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CFCG Acquires Xishan Schools
Continue to Explore High Qualities of Cultural and Educational Assets

2016.11.22

China First Capital Group Limited (“CFCG” or the “Group”; stock code: 1269) announced today that Mega Perfect International Corporation, an indirect wholly-owned subsidiary of CFCG, has acquired 58.3% equity interest in Topford Vast International Co., Ltd, and can, via structured contracts exercise control over 58.3% interest in Xishan Schools. The aggregate amount of consideration payable by Mega Perfect International under the investment agreement is RMB350 million. The Group intends to pay the consideration using internal resources, and by way of debt or equity financing combined.

With over 11,000 students in total, Xishan Schools are renowned for football and martial arts training, the schools include Fuqing Xishan School, Fuqing Xishan Vocational and Technical School, and Xishan school in Jiangxi Province, with five management zones for kindergarten, primary school, middle school, high school and vocational and technical school. Fuqing Xishan School and Fuqing Xishan Vocational and Technical School are located in Fuqing, Fujian Province, the PRC, formerly the Fujian Xishan Literacy and Kungfu School. Established in 1994, the Fujian Schools have a total gross floor area of approximately 230,000 square metres. Equipped with advanced education and teaching facilities, the Fujian Schools boast top comprehensive strengths among their likes in the PRC, earning for them such honours and titles as “Top 10 Famous Private School Brands of China”, “Exemplary Private Schools of Integrity, Management and Quality of China”, “National Advanced Unit of Private Schools” and “National Exemplary Schools of Quality for Education”.

Established in 2001, Jiangxi Xishan School, in Nanchang City, Jiangxi Province, the PRC, has a total gross floor area of approximately 140,000 square metres. Jiangxi Xishan School features physical education, providing five distinctive education streams namely “kungfu, football, dragon dance, English language and arts”. It is a “National Exemplary Unit for Unique Feature Education”, an “Advanced Group of Educational System in Jiangxi” and “Exemplary Unit of Private Schools in Nanchang”. The school’s kungfu team has participated many times in national and provincial competitions and won gold and silver medals in various competitions. In 2007, the Jiangxi Football Association established “Youth Football Targeted Training Base” in the school, which is the only youth football training base in Jiangxi. In 2014, the Campus Youth Football Training Base of Beijing Football Association was set up in the school.

Mr. Yan Haiting, President and Executive Director of CFCG, said, “The demand for quality education in the PRC and the world has been growing consistently and that has made education investment the focus of the global capital market. This year, CFCG has continued to speed up development with the hope of capitalising on its first mover advantage in the booming education investment market to more effectively capture market opportunities. The Group is actively looking in the PRC and around the world for education investment targets with development potential. It makes key investment in high quality cultural and education assets to establish the layout of its entire education industrial chain and achieve the best integration of domestic and overseas education resources, so that more students in the PRC can receive quality education. The Xishan project, its scale and education philosophy of the Xishan project, agree with the overall development strategies and investment standards of the Group in many aspects. The management believes drawing from the extensive experience of the Group’s professional post-investment management team, the project will be able to generate the greatest synergies in areas including curriculum, technology, brand, finance and management, ultimately raising the value of the project and creating long-term and stable investment returns.”