CFCG Completes New Shares Placement Raising About HK$800 Million
Moves Full Steam to Develop Education Investment Business


China First Capital Group Limited (“CFCG” or the “Group”; stock code: 1269), which engages mainly in education industry investment and financial services, announced today that it has completed placement of approximately 133 million placing shares in total at the placing price of HK$6 per share to no less than six independent third party subscribers (equivalent in all to approximately 16.67% of the enlarged issued share capital). Of the HK$790 million net proceeds from the share placement, the Group will use approximately HK$500 million to develop education investment business by way of investment and acquisitions; approximately HK$200 million to develop financial service business, and the remaining approximately HK$90 million as general working capital.

Mr. Wilson Sea, Chairman and Executive Director of CFCG, said, “We are pleased to bring in several strong shareholders, who enable us to boost our shareholder base and financial clout. The enthusiastic response to this latest fundraising effort clearly reflected that our development strategy has gained market recognition and support and also that investors have strong confidence in the prospects of the industry.”

In recent years, the PRC has accorded priority to developing the education sector and introduced a number of favourable policies, which have given private education businesses the best ever “honeymoon period” for development. The private education sector is currently in the growth phase characterized by low market concentration, strong demand, and promise of huge profit and bright development prospects. From an investment standpoint, the education industry is less susceptible to impacts from the economic cycle, hence offers steady and relatively high return, making its players attractive merger and acquisition options and for financial investment among investment institutions. Thus, the Group believes this is opportune time to rapidly expand its business capitalizing on its first-mover advantage.

Mr. Sea concluded, “After securing the capital, apart from looking for quality education investment projects in the PRC, we will also speed up mergers and acquisitions of international education resources that we may bring those international quality brand education resources to the PRC to satisfy the country’s huge potential market demand. We will also establish branches in other countries with rich education resources, such as the UK and Australia, to perfect our overseas business coverage and reach, which will allow the Group to more effectively seize global opportunities. In addition, we will optimize our business portfolio, continue to embrace education project investment as our core business, with complementary support from our diverse financial service business units, so that we may build an internationally renowned brand, grab market share, improve profitability and generate long term and stable returns for shareholders.”