CFCG Issues HK$600 Million Corporate Notes to Zhongyuan Bank
Enhances Financial Strength Pushes Forward “Education Operation plus Financial Services” Dual-pronged Development Strategy


20 December 2017, –China First Capital Group Limited (“CFCG” or the “Group”; stock code: 1269) announced yesterday that the Group has signed a subscription agreement with Zhongyuan Bank Co., Ltd. (“Zhongyuan Bank”) to issue HK$600 million worth of corporate notes. Together with HK$800 million convertible bonds of the Group subscribed early this month by Huarong International Financial Holdings Limited (“Huarong”), the Group has raised HK$1.4 billion in capital to help it speed up development of its education operation business and financial services business, while reflecting the confidence Huarong and Zhongyuan Bank have in its business and growth prospects.

According to the agreement, the Group agreed to issue 5% notes of the Company due 2020 to Zhongyuan Bank of an aggregate principal amount of HK$600 million. CFCG intends to use the net proceeds from the notes issuance to develop its education operation business and financial services business including investing in educational institutions and projects, launching educational consultancy and management services, acquiring overseas financial service licenses, and expanding the scope and scale of services provided by its financial service business.

Dr. Wilson Sea, Chairman and Executive Director of CFCG, said, “First Capital Securities Limited was a joint bookrunner and joint lead manager of Zhongyuan Bank’s listing in July, and is very happy that we have earned the trust and support of Zhongyuan Bank. It is evident that the bank has confidence in CFCG’s development and prospects of the education industry. The Group has brought in a number of strong investors to reinforce its financial strength. Capitalizing on our leading presence in the industry, plus having solid support from investors, we will diligently push forward with our ‘Education Operation plus Financial Services’ dual-pronged strategy. At the same time, we will also continue to consolidate the edges we have from holding multiple financial licenses and use them actively to grasp opportunities in and outside China, the market opportunities born out of national policies favorable to education development, to create for itself better development prospect, as well as actively implement set business strategy, to the end of driving growth of the Group and generating lucrative returns for shareholders in the long run.”