Strong Growth in 2017 Interim Results of China New Higher Education

Interim results for the six months ended 30 June 2017: ■ Comprehensive income amounted to RMB265.7 million, representing an increase of 34.4% as compared to the same period of 2016

■ Recorded profit from operations of RMB110.2 million, representing an increase of 38.1% as compared to the same period of 2016

■ Gross profit margin and net profit margin were 57.1% and 51.9% respectively

■ Core net profit (excluding the listing expense) amounted to RMB127.8 million, representing an increase of 52.3% as compared to the same period of 2016

■ The number of students enrolled was 46,460 (including 33,462 students from two universities operated by the Group and 12,998 students from two universities invested by the Group), representing a significant increase of 56.3% as compared to the same period of 2016

(31 August 2017, Hong Kong) China New Higher Education Group Limited (“China New Higher Education”, together with its subsidiaries, “the Group”, stock code: 2001.HK) is pleased to announce the unaudited consolidated interim results for the six months ended 30 June 2017 (“the Review Period”).

During the Review Period, due to the adjustment of tuition fee of the Yunnan School, and the significant increase in the number of students enrolled in the Yunnan School and the Guizhou School, the revenue of the Group amounted to RMB265.7 million, representing an increase of 34.4% as compared to the same period of 2016. The Group recorded profit from operations of RMB110.2million, representing an increase of 38.1% as compared to the same period of 2016. Gross profit margin increased from 56.3% for the same period of the previous year to 57.1% for the current period. Core net profit (excluding the listing expense) amounted to RMB127.8 million, representing an increase of 52.3% as compared to the same period of 2016. The Group recorded other income and gains amounting to RMB53.2 million, representing a remarkable increase of 174.2% as compared to 2016.

As of 30 June 2017, the total number of students enrolled of the Group was 46,460, representing a significant increase of 56.3% as compared to the same period of 2016. Currently, the Group is in possession of four universities, including the Yunnan Technology and Business University, the Guizhou Technology and Business Institute, the Harbin Huade University and Science and Technology College of Hubei University. The Northwest Technology and Business Institute, which is under construction in Lanzhou, Gansu, is expected to commence operation in 2019 and to have its first batch of college students enrolled in September the same year, with an enrollment capacity of 15,000 college students. In addition, the Yunnan school and Guizhou School are expected to be expanded in the future by utilizing substantial areas of reserved land. The Yunnan school has approved to expand the size of school students to 44,000 during the 13th Five-Year Plan by the Provincial Education Department, representing a significant increase of 125% as compared to the end of 2016, which will exert positive influence on the future increase in the number of students of the Group.