For immediate release 26 August 2019
（Stock code：2001.HK）

Core Revenue increased by 101.4% to RMB 501 mn
Net profit increased by 50.5% to RMB 226 mn
Completion of consolidation of Henan School, Northeast School, Guangxi Schools and Central China School

(26 August 2019, Hong Kong) China New Higher Education Group Limited ("New Higher Education Group", together with its subsidiaries, the "Group"; stock code: 2001.HK) is pleased to announce the interim results for the six months ended 30 June 2019.

Financial Overview
Total revenue amounted to RMB565.0 million, up 73.1% yoy

Core revenue amounted to RMB501.0 million, up 101.4% yoy

Gross Profit amounted to RMB268.6 million, up 92.0% yoy

EBITDA amounted to RMB341.8 million, up 58.5% yoy

Net profit amounted to RMB225.7 million, up 50.5% yoy

Net profit attributable to the parent amounted to 201 million, up 34.0% yoy

Proposed interim dividend of RMB0.036 per share, up 33.3% yoy.

Operation Overview
Completion of consolidation of Henan School, Northeast School, Guangxi Schools and Central China School
Industry-leading organic growth, for the 4 schools self-built and invested by the Group at the time of listing, total student enrollment at these 4 schools increased by 15.0% yoy

"Since our listing in 2017, we seized the opportunity to acquire 5 schools at very affordable costs based on our internal investment screening criteria, which has enabled us to build an extensive presence across 7 provinces in China and allowed the newly acquired schools under our management to achieve substantial improvements." Founder and Chairman of the Board Mr. Li Xiaoxuan said.

"Meanwhile, we place great importance to the strengthening our post-investment management standards. The construction speed of our Gansu College is the fastest among the education space in the province. From 2015-2018, our total student enrollment grew at a CAGR of 50%. The current student enrollment has exceeded 100,000 students.

Looking forward, the policy for the development of private education will be more specific and there will be a larger room for the growth of the sector as well. We will capitalize on these opportunities and continue to improve ourselves in hope of creating stable returns for our shareholders."

Financial Analysis
Looking back, the Group's core revenue increased 101.4% to RMB 501 mn. Tuition fee income increased 97.7% to RMB455 million, boarding fee increased 146.6% to RMB46 million, The significant increase in revenue was mainly due to the new completions of acquisitions of Henan School, Northeast School and Guangxi Schools, and the increase of student enrollment and tuition fees in the existing schools facilitated by collectivized school operation advantages.

Gross profit increased by 92.0% to RMB269 million. The increase is attributable to the increase in student enrollment of the schools owned by the Group and the impacts of the newly invested schools (Henan School, Northeast School and Guangxi Schools). The gross profit margin decreased to 53.6% from 56.2%, primarily due to new completions of acquisitions of Henan School and Guangxi Schools, whose gross profit margin are relatively lower than other existing schools of the Group.

Net profit increased 50.5% to RMB226 million, net profit attributable to the parent amounted to 201 million, up 34.0% yoy.

Cash and Cash equivalents
As of 30 June 2019, the Cash and Cash equivalents of the Group amounted to RMB475 million.

Capital Expenditures
For the six months ended 30 June 2019, the Group's capital expenditures were RMB195.2 million. The Group's capital expenditures were primarily related to the construction of buildings and school facilities at the campus and the prepaid rental for the land lease and purchase of equipment and software.

Business Review
For the six months ended 30 June 2019, the Group operated and invested 7 higher education institutes in 7 in mainland China with nationwide student enrollment coverage. Total student no. reached 101,766 (including the unconsolidated Gansu College). Furthermore, the Group has completed the construction of the new campus of Gansu College with the fastest construction speed in the local region。Besides, the change of promoter and consolidation of Central China School were completed today. Consolidation of Henan School, Northeast School, Guangxi Schools and Central China School were all completed.

Integration of Industry and Education, Cooperation between Schools and Enterprises
For the schools under the Group, they established a profound school-corporate cooperation with many well-known companies including Microsoft, Huawei, Alibaba, Lenovo, Jingdong, Midea, Gree, Geely, 360, Tedu, iFlytek, China Union, Chinasoft International, Newland Group and Travelsky Group. They jointly carry out talents training through many cooperative models such as teaching resources sharing, course resources sharing, joint-construction of experimental training bases, common construction of majors as well as college joint-construction.

Future Prospect

"Endogenous Growth + Value Investment" Growth Strategy
Benefiting from the country's favorable policies of continuous improvement in the gross enrollment rate of higher education and the large-scale enrollment expansion of higher education sector, and the solid operation capability of China New Higher Education Group, the number of student enrollment of the schools which were self-built and invested by the Group was over 15% year-on-year. According to the market forecast conducted by China Insights Consultancy, the average tuition fee for private colleges and universities in 2018 is RMB13,836, while the average tuition fee for the Group's universities in 2018/19 is only RMB9,947, indicating that the future tuition has very big growth potential.

Due to the large gap between the income and quality of the newly invested schools
and the flagship schools, the Group will leverage its advantages in collectivized school operation to achieve resource sharing among and coordinated development of schools and to elevate the education quality and management efficiency. In 2019, the employment rate of the students of our schools remains at a high level and the average salary of our students is the highest among the sector. In particular, the average employment salary of the 2019 Excellence Class graduates exceeds RMB80,000. Our efforts in the education development are widely recognized by students, parents and enterprises.

The Group will continue to maintain the rapid growth of our flagship universities and leverage our advantages in school operation to close the distance between the schools acquired and our flagship universities, in order to realize fast-paced growth.

Endogenous Growth

Investment Strategy
As a pioneer of collectivized school operation, the Group has 15 years of experience in acquisitions and self-construction of higher education academic schools. We always focus on higher education, as well as the key regions with a large number of college-aged population, low gross enrollment rate penetration, scarcity of quality education resources and large room for revenue growth and quality improvement.

In recent years, the Group has seized the opportunity to acquire 5 schools at affordable costs according to the internal investment screening criteria. Building an extensive presence across 7 provinces in China, it is a Hong Kong-listed education company with the largest provincial presence and broadest regional coverage. Meanwhile, we attach great importance to the post-investment management standards. The speed of construction of our Gansu College is the fastest among the Gansu education space. Thanks to the right investment strategy we have adopted and the scientific post-investment management, the Group has been able to achieve rapid growth. From 2015-2018, the total student enrollment grew at a CAGR of more than 50%. The current student enrollment has exceeded 100,000 students (including Gansu College).

-End-

About China New Higher Education Group Limited
China New Higher Education is a leading private formal higher education group in China with nearly 20 years of education industry experience, specializing in providing higher education which focuses on applied sciences. The Group endeavors to help each student maximize his or her potential and live his or her life to the fullest. The Group's fundamental educational philosophy is mainly composed of two integral parts: (i) to nurture the growth of students, and provide education tailored to each student's individual needs and circumstances; and (ii) to equip students with practical and readily applicable skills that meet market demand. The Group currently operates and invests in six schools across six provinces in mainland China with nationwide student enrollment coverage. Furthermore, the Group has applied to be a joint school sponsor of Gansu College and is expected to complete its new campus relocation in September 2019.

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 job market. It achieved industry-leading graduate employment rates, with over 98% of its graduates from 2013 to 2015 by the end of their year of graduation, according to Frost & Sullivan. The Group has been included as 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 has been 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.

The 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
Anson Wong
Tel: (852) 3970 2236
Email: georginazhaoxy@wsfg.hk