CFCG Announces 2018 Annual Results
Adhering to Differentiation and Characteristic Establishing a Globally Influential Financial Services Group Focuses on Education


(Hong Kong, 29 March 2019) China First Capital Group Limited (“CFCG”, or the “Group”, stock code: 1269.HK) has announced its audited annual consolidated results for the year ended 31 December 2018 (“the year under review”).

During the year under review, the Group recorded a revenue of approximately RMB 1,810.8 million. Revenue from both financial services business and education operations recorded growth. Revenue from financial services business increased by approximately 57.2% year-on-year to approximately RMB 150.3 million and revenue from education operations increased by 28.1% year-on-year to approximately RMB 306.6 million. During the year under review, the Group recorded a gross profit of approximately RMB 505.4 million, increased by approximately 6.2% year-on-year. The Group's overall gross profit margin rose approximately 2.4 percentage points to approximately 27.9% from approximately 25.5% in 2017. Total assets of the Group recorded approximately RMB 9,799.8 million, increased by 4.7% year-on-year.

Since the end of 2014, the Group has started to set foot in the financial services business, which provides services such as dealing in securities, underwriting and placing, financing consultancy, merger and acquisition agency, financial advisory, asset management, private equity fund management, credit financing, and migration finance. Since 2016, the Group has continued to diversify its business, with a mission of “Finance Empowers Education, Education Lights Up Future” and to establish an trinitarians interactive business mode, which capitalised educational investment as base and both educational management service and educational financial service as cradles. The Group aspires to become “a globally influential financial services group focuses on education”.

During the year under review, the Group explored and invested in high-quality educational projects in China and overseas. In January 2018, the Group acquired 10% of the total issued shares of SJW International Co., Ltd. and entered the online education market. In August 2018, the Group acquired 100% of the equity interest in Xinjiang Edukeys International Education Services Co., Ltd.* (新疆中際育才教育諮詢有限公司) (together with its subsidiaries, “Edukeys Group”). Currently, Edukeys Group primarily operates the PGA (Project of Global Access) high school international program, which is a series of international programs formulated based on the features of high school education in China that suits to Chinese students, and has operated throughout 18 middle schools in China. In June 2018, the Company subscribed for approximately 49.0% of KSI Education Ltd’ s enlarged total issued shares to engage in exploring, cultivating, investing and operating high-quality education resources around the globe (the UK in particular) and to adapt such resources to China’s education market.

The Group has obtained diversified financial licenses and established a well-established financial services system, thus financial services business grew rapidly. During the period under review, First Capital Securities was engaged in the listing of Bojun Education (stock code:1758.HK), China Xinhua Education (stock code:2779.HK), Top Education (stock code:1752.HK), China 21st Century Education (stock code:1598.HK), Hope Education (stock code:1765.HK), China Chunlai Education (stock code: 1969.HK), BExcellent Group (stock code:1775.HK), Kinergy Corporation (stock code:3302.HK), DaFa Properties (stock code: 6111.HK), Sichuan Energy Investment Development (stock code:1713.HK), Zhejiang Cangnan Instrument (stock code:1743.HK) , Shanshan Brand (stock code:1749.HK) and the Zhongrui Industrial Group’s issuance of US$ senior notes, acting as the joint global coordinator, joint bookrunner, joint lead manager, etc. In 2018, First Capital Securities ranked twenty-first on Bloomberg’s list of securities dealers by IPO underwriting business in Hong Kong in 2018 in terms of the number of underwritten projects, and ranked thirtieth in terms of the amount of IPO proceeds raised.

With respect to fund management, FC Fund acts as the manager of a number of funds. Among which, Wuxi Guolian First Capital Equity Investment Fund Center (Limited Partnership)*(無錫國聯首控股權投資基金中心(有限合夥)), invested in Bojun Education in 2016, which has been listed on the Main Board of the Stock Exchange in July 2018. Edukeys Group, which its 65% equity interest was acquired by another fund, Sub-fund No.1 of Chongqing First Capital Cultural Investment Equity Investment Fund (Limited Partnership)*(重慶首控文投股權投資基金合夥企業(有限合夥)1號子基金) in 2017, has subsequently become a wholly-owned subsidiary of CFCG after the Group acquired its entire equity interest in August 2018.

Looking forward, Dr. Wilson SEA, the Chairman and Executive Director of CFCG concluded “With its outstanding performance in the education finance sector, the Group’s financial service business has framed a high recognition brand and market influence. Looking ahead into 2019, we will take advantage of our presence across the entire education industry chain and with FC Financial Holdings as the cornerstone, each business unit will work closely together by adhering to the path of differentiation and characteristic, and upholding the operational philosophy of an education investment bank. The Group will seek to unleash the synergy between its financial services business and education operation business, feature on educational financial services with other industries as complement, and the Group is committed to become an investment banking professional who knows education the most. ”