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China New Higher Education Has Early Received Prepayments for Xinjiang Project

(Hong Kong, June 22, 2020) China New Higher Education Group Limited (“China New Higher Education”, together with its subsidiaries, the “Company”; stock code: 2001.HK) is pleased to announce that the Company had received the payment of the first instalment of RMB100 million by the counterparties on 20 April 2020, as at the date of the announcement, the second instalment of RMB36.79 million has been received by the Company as agreed in the settlement agreement.

In late 2019, the Company obtained the positive judgement in favour of the Company’s Xinjiang project claims. The counterparties then approached the Company to enter into a settlement agreement, which agreed to pay back the Company’s prepayments, amounting to approximately RMB137 million, by instalments. The Company has early received the second instalment as at the date of the announcement. The counterparties had fully repaid the Company’s prepayments according to the amount as agreed in the settlement agreement.

Meantime, the recovery of prepayments for Xinjiang project will reverse the provision that the Company made previously, resulting in one-off non-operational profit which will increase net profit in 2020, maintaining sufficient cashflow level and building a solid foundation for future development.

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About China New Higher Education Group Limited:

China New Higher Education Group Limited is a leading private formal higher education group in China with 20 years of education industry experience, specializing in providing higher education which focuses on applied sciences. The Group endeavors to help each student maximize their potential and live their life to the fullest. Since 2009, the Group has been operating schools in different provinces and regions, and its current school network covers 7 provinces in China, including Yunnan, Guizhou, Hubei, Heilongjiang, Henan, Guangxi, and Gansu.

The Group provides high quality higher education in a wide selection of fields in applied sciences. Its courses are designed to equip students with practical and readily applicable skills, helping to prepare them for the job market. As a leader in high-quality employment, the Group won the title of the Top 50 National Employment of the MOE, with an average employment rate of above 97%. The Group became a constituent stock of the Hang Seng Composite Small Cap Index and the Hang Seng Consumer Goods & Services Index in the Hang Seng Composite Index Series in August 2017, and was included as a constituent stock of the MSCI China Small Cap Index in November 2017 and included as a constituent stock of Shenzhen and Hong Kong Stock Connect in March 2018.