Planning to Construct 3 New High Schools to Increase the Market Share

HONG KONG — China YuHua Education Corporation Limited (6169.HK)announced the unaudited consolidated the interim results for the six months ended 28 February 2017 (the “Reporting Period” ) today. During the Reporting Period, adjusted net profit of the company was RMB195.2 million, representing an increase of 30.1% for the corresponding period of 2016. Due to the result of an increase in student enrolment and tuition fees, adjusted operating profit was RMB201.0 million for the six months ended 28 February 2017, representing an increase of 22.5% as compared with RMB164.1 million for the corresponding period in 2016. The revenue amounted to RMB421.4million, representing an increase of 8.0% as compared with RMB390.2 million for the corresponding period in 2016. Adjusted gross profit of the company reached RMB223.5 million, representing an increase of 12.8% as compared to the corresponding period in 2016. The board declared an interim dividend of HK$0.037 per share in the Reporting Period. The business of the Group remained relatively stable with no material changes for the six months during the Reporting Period.

As one of the leading private school operators in central China, the company offers private education with comprehensive educational programmes from kindergarten through university. As at 28 February 2017, the group had established 25 schools located in Henan province of China, including kindergartens, primary schools, middle schools and university, adding one new high school on Luohe Elite School campus compared to the corresponding period in 2016.

With over 15 years of operating private schools in Henan province of China, YuHua Edu is committed to “foster modern talent with leadership and lifelong learning capabilities”. The Group emphasizes the well-rounded development of students and have structured the curriculum to ensure the high quality of education and inspire and encourage students to explore their individual interests. The Group has set up both university curriculum and K-12 schools curriculum. The K-12 schools, which provide education from kindergarten to high school and also be committed to maximizing their students’ opportunities to enter top-tier universities in China and reputable colleges and universities abroad, allow the Group to attract students at an early age and create a stable and sustainable student pipeline.

The University of “YuHua Education” offers comprehensive tertiary level education aimed at equipping the students of Company with the practical knowledge and skills to prosper in their careers. The University of “YuHua Education” has established a strong reputation and achieved the fastest growth among the five largest private higher education institutions in terms of student enrolment in the PRC over its seven years of development. According to the Frost & Sullivan Report, The University of “YuHua Education” had the third highest student enrolments in the 2015/2016 school year among private higher education institutions in China. In February 2016, The University of “YuHua Education” ranked second in terms of overall strength in the Independent College category of the PRC university rankings published by the China University Alumni Association.

Enter new markets with strong demand for high-quality education.

Li Guangyu, the Chairman and Executive Director of YuHua Edu said, “In the future, relying on our strong pipeline for opening new schools, the Group is planning to construct three new high schools which will be located in the Group’s existing campuses, including Xuchang YuHua Elite School Campus, Kaifeng YuHua Elite School Campus and Jiyuan YuHua Elite School Campus, each of which will involve building a new student dormitory and ancillary teaching facilities relatively. Three new student dormitories will have a capacity of approximately 6,000 students in total. We believe it will further enhance our brand awareness, increase our market share in existing markets and enter new markets with strong demand for high-quality education. “

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