CFCG Transforms its Business Successfully
To build an “Education Industry Plus Finance” Integrated Platform Providing Investment and Financing Services
Focuses on Education Business Investments
Signs MOU with Two Educational Institutions


China First Capital Group Limited (“CFCG” or the “Group”; stock code: 1269) has announced today that the Group has entered the education investment sector. The Group has entered into the memorandum of understandings (“MOUs”) with Kunming Professional College of Arts (昆明藝術職業學院) and Jinan Shijiyinghua Experiment School (濟南世紀英華實驗學校) in respect of possible acquisition through its wholly owned subsidiary, with the aim to build an “Education Industry plus Finance” integrated platform engaged in the investment, financing and management of education business.

According to the MOUs, Shenzhen First Capital International Commercial Consultancy Company Limited, a subsidiary of CFCG, intends to acquire 70% of stake in Kunming Professional College of Arts and 51% of stake in Jinan Shijiyinghua Experiment School from independent third parties. Kunming Professional College of Arts mainly nurtures talents with practical skills in music, performing arts, media studies and design studies. Jinan Shijiyinghua Experiment School is an international boarding school offering education from primary to secondary levels. The two educational institutions recorded a combined revenue of approximately RMB75.7 million in FY2015.

The two planned acquisitions will help the Group to speed up its strategic transformation and to advance towards its goal of becoming an “International Education Assets and Financial Services Enterprise”. Not only targeting and investing the educational institutions with strong potential, the Group will also introduce authoritative management and operational experts in the education sector to manage the operations after investments by its private equity fund so as to build a brand in the education and financial industries.

Actively deployed strategic transformation, CFCG has introduced and developed new businesses such as financial advisory and consultancy, financial credit, securities brokerage and investment migration consultancy services. It has recently initiated the private equity fund business which focuses on investments in the education business, as well as mergers and acquisitions in the secondary market. The Group intends to explore and invest in educational institutions and enterprises with strong market potential by its capital management platform to provide services for financing and listing sectors, and to become the leading educational and financial company in China and overseas.

In view of the strong growth potential of the education industry in China, to further capture the opportunities, the Group’s private equity division has signed a strategic cooperation agreement with Shenzhen Culture Assets and Equity Exchange in mid-April in relation to the establishment of China’s first professional market engaged in assets and equity trading in the education sector and resources consolidation platform the Four Cultural Boards (Education Board). The platform is to provide promotion for listing projects, financing services and assistance services related to transfer of listing with the aim to develop an assets and equity over-the-counter market focusing on the education industry and education entities in China.

Regarding financial services, the Group will continue to strengthen its “all-round license” advantage. Apart from the existing licences for dealing in securities, advising on securities and asset management (Types 1, 4 and 9 regulated activities) granted by the SFC, the Group is applying for the licence for advising on corporate finance (Type 6 regulated activity) so as to provide professional financing solutions and turnkey investment and financing services for high net worth customers and institutional investors of the Group’s subsidiaries, First Capital Asset Management and First Capital Securities. As for industry investment, the Group will focus on exploring the opportunities in the education industry and invest in education-related enterprises with high potential. Meanwhile, the Group’s financial services business can provide different financing channels and solutions for investment in education projects in order to create a financial platform combining investment in and operations of education industry.

Dr. Wilson Sea, Chairman and Executive Director of CFCG, said, “Given the booming development and growing demand of the education industry in China and benefitting from the national policy to support private education institutions, prospects are promising for the private education market with abundant opportunities for industry investment in the education market. We are highly confident about the education industry and are well-positioned to grasp these opportunities. Given the flourishing development of the “financing plus education industry” and leveraging the advantages of our own professional team and resources, we have established a financial platform featuring the comprehensive integration of education and operations. We believe that CFCG will realize even greater potential after our transformation thereby driving the sustainable growth of the Group in the long term and generating the greatest value for our shareholders.”