HANGZHOU, China, Feb 7, 2018 /PRNewswire/ -- Hailiang
Education Group Inc. (Nasdaq: HLG) ("Hailiang Education" or the
"Company"), an educational services provider of private
primary, middle and high schools in China today released a
letter to shareholders from the chairman of the Company's board of
directors.
Dear Shareholders,
2017 was an extraordinary year for Hailiang Education. Hailiang
Education is developing at full speed, as demonstrated by its
business performance in the 2017 fiscal year and its ongoing
projects:
- Successfully operating Hailiang Education Park with the support
of Hailiang Group
- Progressively advancing cooperation with Chinese government in
jointly running schools
- Further optimizing and enhancing Hailiang Education's
asset-light development model
- Deepening Hailiang Education's collaboration with high-level
schools and educational institutions domestically and
internationally with remarkable results
- Improving Hailiang Education's brand awareness and impact in
China's education industry
- Achieving substantial revenue and market value growth, thereby
bringing considerable return to our shareholders
We have endured the first half of our 2018 fiscal year ending
June 30, 2018. As the traditional
Chinese New Year approaches, I am very excited and delighted to
report to our shareholders our achievement in the 2018 fiscal year
thus far and our outlooks for the near future.
The Implementation of New P.R.C Law for Private
Education Promotion Will Advance the Development of Private
Education in China
With the implementation of the amended P.R.C Law for
Private Education Promotion ("The New Law") in
September 1st, 2017, the
significance of private education will become more prominent. That
is, private education will be an integral part of China's educational service system. The New
Law has stated that the government could support private education
development through purchasing their educational services, which
will provide huge developmental opportunities for exceptional
private educational services providers, and usher a new era for
Hailing Education's strategic expansion.
As of 2016, the number of students in private primary, middle
and high schools in China has
surpassed 15.6 million. While Hailiang
Education is the largest educational services provider of
private primary, middle and high schools in China, the number of students served by
Hailiang Education accounted for approximately 0.35% of the private
school enrollment. Therefore, driven by these preferential
policies, there is great potential for our Company in the education
industry in the future.
The Company firmly believes that the primary, middle, and high
schools in PRC private education section will be operated by the
most influential educational services providers collectively.
Hailiang Education will endeavor to be one of China's best, largest, and most profitable
private educational services provider, thereby leading the industry
in facilitating social welfare.
The Engagement of Mr. Cuiwei Ye as our Principal General Will
Lead Hailiang Education into Outstanding Success
On the 3rd of November
2017, Mr. Cuiwei Ye, the Deputy Director of the Academic
Committee of Chinese Society of Education, China's Most Prestigious Educator,
China's Outstanding Middle School
Principal, China's Well-known
Middle School Educator, was appointed the Principal General of
Hailiang Education. The employment of Mr. Ye is expected to build a
firm foundation for Hailiang Education to be the leading company
among the private educational services providers in China.
The Assignment of Strategic Cooperation Agreement Is Expected to
Lay a Solid Foundation For the Sustainable Development of Hailiang
Education
On the 8th of November
2017, Hailiang Education entered into a Strategic
Cooperation Agreement (the "Agreement") with Hailiang Group Co.,
Ltd. ("Hailiang Group"), and Hailiang Education Management Group
Co., Ltd. ("Hailiang Education Management"). This cooperation
affords Hailiang Education to operate private and public primary,
middle and high schools constructed, merged and acquired or
entrusted by Hailiang Group and Hailiang Education Management.
Currently, Hailiang Education has owned or been providing
educational services to an aggregate of 23 schools for more than
55,700 students, positioning the Company to embark on the path to
become the largest educational services provider of private
primary, middle and high school in China.
Hailiang Group Is Expected to Provide a Strong Foundation for
Hailiang Education's Asset-Light Development Model
The Agreement is expected to rapidly enhance the asset-light
development model of Hailiang Education and greatly improve the
business prospects of the Company. As a result, the net growth of
Hailiang Education is expected to increase at compound annual
growth rate of 30% for a long period, making it possible to bring
higher returns for our shareholders.
As a well-known, international private enterprise group,
Hailiang Education continues to stand by the concept of "working
for the benefit of both the enterprise and the society", giving
priority to the development of education. According to the
strategic roadmap of Hailiang Group, Hailiang Group will construct
more than 7 "Hailiang Education Park" by the year of 2025 in
China, build 3 to 5 high quality
primary, middle and high schools around each "Hailiang Education
Park", merge and acquire more high-level private schools and manage
more private and public primary, middle and high schools by
providing educational management services. It is estimated that
Hailiang Education will provide educational management services to
more than 150,000 students by September
2020. By September 2025, the
student number is expected to reach 400,000 to 500,000.
The Introduction of Extraordinary Talents and Launch of Training
System Will Contribute to the Fast Development of Hailiang
Education
To provide comprehensive, high quality educational and
management services for the schools under the agreement, Hailiang
Education plans to recruit 100 young outstanding principals, 500
recent graduates returning from overseas, 200 foreign young
teachers, 1000 excellent teachers in China in the next 2 years. These excellent
young people will be the most valuable resources of Hailiang
Education, to provide the high-level educational and management
services required by the cross-regional development of Hailiang
Education in the future.
The International Cooperation with ELS Language Center and UK's
Pate's Grammar School Will Speed Up Hailiang Education's
Internationalization Process
On September 14th,
2017, Hailiang Education signed a cooperation agreement with
America's ELS language center to provide EAP program for Hailiang's
students. This program provides students with high-level academic
English lessons to better prepare them for the study in foreign
countries in an early stage.
On September 23rd,
2017, Hailiang Education entered into a Strategic Cooperation
Agreement (the "Pate's Agreement") with Pate's Grammar School
Trading Company, a wholly owned subsidiary of Pate's Grammar School
("Pate's"), one of the best British mixed government schools with
the longest history, aiming to build China's first-class internationalized
bilingual school that provides international comprehensive
education services from primary to high school.
Hailiang Education Receives Multiple Industry Awards
In the second half of the calendar year 2017, Hailiang Education
received multiple awards including "2017 Education Group
Influencer" by the Tencent Education Annual Billboard,
"2017 Top Brand of China's Education Group Award" by Sina
Education, "Annual Most Value Investment Award" by the
China Financial Summit Winter Forum, and "Top 10 Innovative
Brand in China" awarded jointly by
China International Business magazine and other authorized
institutions. Mr. Cuiwei Ye, Principal General of Hailiang
Education, was awarded "China's
Annual Brand Builder" at the 2017 Annual China Brand Summit.
Hailiang Education has brought huge benefit to the industry and
society as demonstrated in these honors, which at the same time
encourage Hailiang Education to take the initiative to embrace more
challenges in the future.
In other words, I believe Hailiang Education will start a new
chapter in the future and will become the industry's most
outstanding educational services provider of private primary,
middle and high school, to make further contribution to
China's private education
sector.
On behalf of Hailiang Education, I would like to express my
sincere gratitude to the students and parents for your trust in us,
to the shareholders for your continuous support, and to the board
members, management team, teachers and staffs for your commitment
in the past year.
Ming Wang
Chairman and Chief Executive Officer
Hailiang Education Group Inc.
About Hailiang Education Management Group Co., Ltd.
Hailiang Education Management Group is a subsidiary of Hailiang
Group with the purpose of education investment and management.
Hailiang Education Management Group particularly focuses on the
health and happy growth of children & teenagers, devotes to the
construction investment of primary and high schools and M&A of
high-quality education institutions, and operates private and
public primary and high schools in entrusted management. Until now,
Hailiang Education Management Group has invested over $750 million in education industry in total.
Hailiang Education Management Group plans to increase no less than
$1.5 billion investment in education
sector and strives for a total $2.5
billion investment in the next 5 years.
About Hailiang Group Co., Ltd.
Hailiang Group Co., Ltd. was founded in 1989 in Zhejiang Province. With 29 years of rapid
development, Hailiang Group has now become a giant international
corporation group that mainly develops the industries of basic
education, intelligent manufacturing of nonferrous material and
health. Hailiang Group continues to hold the concept of "working
for the benefit of both the enterprise and the society" throughout
its development. In 2016, Hailiang Group ranked 110th among China
Enterprises, 18th among China Private Enterprises and 3rd among Top
100 enterprises in Zhejiang. The
company's revenue for 2017 reached 164.1
billion RMB.
About Hailiang Education Group Inc.
Hailiang Education (Nasdaq: HLG) is one of the largest
primary and high school educational services providers
in China. The Company focuses closely on the school operation
target of providing the highest quality, unique and
internationalized education, dedicates to provide students with
high quality of primary, high school and international educational
services as well as values the quality of students' life, study and
development. Meanwhile, Hailiang Education tailors the education
delivery to students based upon their individual aptitudes, devotes
to improve the students' academic capabilities, cultural
accomplishments and international perspectives. Hailiang Education
operates multilingual classrooms. Languages used include Chinese,
English, Spanish, Japanese, Korean, French, etc. Also, Hailiang
Education has launched various diversified high-quality courses,
such as Mathematical Olympiad courses, A-level courses, Australia
Victorian Certificate of Education (VCE) courses, IELTS courses,
TOEFL courses as well as SAT courses. The Company has established
extensive cooperative relations with more than 200 international
educational institutions and universities. Hailiang Education is
committed to making great efforts to offer students more
opportunities to win enrollments at well-known domestic or
international universities to further their education. For more
information, please visit http://ir.hailiangedu.com.
Forward-Looking Statements
This press release contains information about Hailiang
Education's view of its future expectations, plans and prospects
that constitute forward-looking statements. These forward-looking
statements are made under the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact in this announcement are
forward-looking statements, including but not limited to the
following: general economic conditions in China, competition in the education industry
in China; the expected growth of
the Chinese private education market; Chinese governmental policies
relating to private educational services and providers of such
services; health epidemics and other outbreaks in China; the Company's business plans; the
Company's future business development, results of operations and
financial condition; expected changes in the Company's revenue and
certain cost or expense items; its ability to raise additional
funding, its ability to maintain and grow its business, variability
of operating results, its ability to maintain and enhance its
brand, its development and introduction of new products and
services, the number of students entrusted by schools, the
successful integration of acquired companies, technologies and
assets into its portfolio of software and services, marketing and
other business development initiatives, dependence on key
personnel, the ability to attract, hire and retain personnel who
possess the technical skills and experience necessary to meet the
requirements of its clients, and its ability to protect its
intellectual property, the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights, and other risks detailed in
the Company's filings with the U.S. Securities and Exchange
Commission (the "SEC"). Hailiang Education may also make written or
oral forward-looking statements in its periodic reports to the SEC,
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Hailiang Education's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, whether known or unknown, and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as "may," "will", "will make," "will be",
"expect," "anticipate," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "endeavor to", "is/are likely
to" or other similar expressions. Further information regarding
these and other risks is included in our annual report on
Form 20-F and other filings with the SEC. All information
provided in this press release and in the attachments is as of the
date of this press release, and Hailiang Education undertakes no
obligation to update any forward-looking statement, except as
required under applicable law.
For more information, please contact:
Mr. Auto Yau
Board Secretary
Hailiang Education Group Inc.
Phone: +86-571-5812-1974
Email: ir@hailiangeducation.com
Ms. Tina Xiao
President
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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SOURCE Hailiang Education Group Inc.