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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. SUMMARY This summary is intended to give you an overview of the information contained in this document. Since it is a summary, it does not contain all the information that may be important to you. You should read this document in its entirety before you decide whether to invest in the [REDACTED]. OVERVIEW We are a leading large-scale private higher education and vocational education group in South China, offering applied science-focused and practice-oriented programs. As of February 28, 2019, we had an aggregate of 37,364 students enrolled at our three schools, namely Huali College, Huali Vocational College and Huali Technician College. According to the Frost & Sullivan Report, by the end of 2017, as measured by student enrollment, we ranked second among all private vocational education service providers in South China and ranked fifth among all private higher education service providers in South China. Our schools offer private higher education and private vocational education in a wide range of fields in applied sciences with an aim to prepare our students with the necessary knowledge base, skill sets and accreditations to secure jobs and pursue careers in particular professions, trades and industries. We have designed our curricula with a distinct emphasis on practical, job-oriented content for a variety of majors that are in demand by potential employers in the Pearl River Delta. We conduct employer surveys and on-going research on industry trends and market demand and seek to continuously improve our major offerings and curricula to respond to the changing needs of the job markets. We have also structured our curricula to combine theoretical study with practical training as we believe practical training serves to enhance our students’ ability to apply knowledge and skills to real-life situations and increase their likelihood of employment. We believe our market-focused major offerings, practical job-oriented curricula and practical training help our students to become more marketable to potential employers. We have a track record of producing candidates with practical and readily applicable technical skills for many corporate employers including national and local, well-known companies and institutions. We have established a broad network of approximately 690 corporate employers, primarily located in the Pearl River Delta, through which we are able to assist our students in obtaining internships and job opportunities. We have also built strong relationships with certain corporate employers and offer customized courses designed to recruit and train students that suit the needs of these specific employers upon graduation. The quality of our education, our extensive employer network and dedicated job placement services allow us to achieve high Initial Employment Rates. For the 2017/2018 school year, our Initial Employment Rate of Huali College, Huali Vocational College and Huali Technician College was 95.9%, 93.5% and 98.4%, respectively, ranking them in the top tier among similar schools in South China. We believe that our graduate employment record attests to the effectiveness of our educational approaches as well as helping to enhance our reputation, raise our profile and attract more students. We believe the quality of our education programs, evidenced by our high Initial Employment Rates, has helped us enhance our reputation and achieve steady growth in our revenue and gross profit over the Track Record Period. Our revenue increased from RMB542.8 million for the year ended August 31, 2016 to RMB578.2 million for the year ended August 31, 2017 and further increased to RMB608.0 million for the year ended August 31, 2018. Our revenue increased from RMB307.1 million for the six months ended February 28, 2018 to RMB339.8 million for the six months ended February 28, 2019. Our gross profit increased from RMB285.9 million for the year ended August 31, 2016, to RMB319.4 million for the year ended August 31, 2017 and further increased to RMB334.4 million for the year ended August 31, 2018. Our gross profit increased from RMB170.0 million for the six months ended February 28, 2018 to RMB189.7 million for the six months ended February 28, 2019. For the years ended August 31, 2016 and 2017 and 2018 and the six months ended February 28, 2018 and 2019, our gross profit margin was 52.7%, 55.2%, 55.0%, 55.3% and 55.8%, respectively. 1 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. SUMMARY Our Educational Philosophy Our fundamental educational philosophy is, based on offering applied science-focused higher education, guided by social responsibility and human development, to cultivate talent with high moral characters, knowledge and practical skills, and pragmatic and innovative characteristics. We are also committed to continuously enhancing our school management and social service capabilities, aiming to create value for the education services provided by our “Huali” schools. Our Schools Overview We operate three schools in Guangdong Province, all of which grant government-accredited degrees or certifications, including: Š Huali College: a private independent college, offering four- to five-year undergraduate programs(1) granting bachelor degrees accredited by the MOE; Š Huali Vocational College (including Zengcheng campus and Yunfu campus): a formal higher education institution, offering three-year vocational programs granting junior college diplomas accredited by the MOE; and Š Huali Technician College (including Zengcheng campus and Yunfu campus): a private technician school primarily offering three-year, full-time vocational programs(2) granting technician diplomas of Huali Technician College accredited by the Department of Human Resources and Social Security of Guangdong Province and short-term intensive vocational programs. Notes: (1) Generally, Huali College offers four-year undergraduate programs, but also offers a five-year undergraduate program in architecture. (2) Generally, Huali Technician College offers three-year vocational programs, but also offers two-, four- and five-year programs to students of different education levels pursuing different types of technician diplomas of Huali Technician College. We set forth below some general information of our schools as of the Latest Practicable Date: Academic Structure and Major School / Location Year of Establishment Service Offerings Huali College Founded in 2001 as a private Higher education(1) 30 majors in nine departments: – Zengcheng District, secondary college affiliated Š seven majors in the department of Guangzhou City, with Guangdong University of electromechanical and information Guangdong Province Technology and was approved engineering; by the MOE in 2004 to become one of the first private Š five majors in the department of independent colleges in urban construction; Guangdong to offer Š six majors in the department of undergraduate programs media and art design; Š five majors in the department of management; Š two majors in the department of accounting; Š one major in the department of foreign languages; Š three majors in the department of economics; 2 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. SUMMARY Academic Structure and Major School / Location Year of Establishment Service Offerings Š one major in the department of landscape architecture; and Š department of international studies organized for students enrolled in the international programs. Huali Vocational College Founded in 2005 as a formal Higher education 27 majors in six departments: – Zengcheng District, higher education institution and vocational Š eight majors in the department of Guangzhou City, and offers three-year education(1) Guangdong Province vocational programs granting media and art; – Yunfu City, Guangdong junior college diplomas Š four majors in the department of Province accredited by the MOE urban construction; Š five majors in the department of electronic and automatic engineering; Š four majors in the department of management and information; Š four majors in the department of international economics and foreign languages; and Š two majors in the department of accounting. Huali Technician College Commenced operation in 2000 Vocational 29 majors in 10 departments: – Zengcheng District, as a private tertiary vocational education(1) Š Guangzhou City, school, and it was certified as six majors in the department of Guangdong Province a state key vocational school design; – Yunfu City, Guangdong in 2005 Š four majors in the department of Province computer; Š two majors in the department of accounting; Š three majors in the department of construction; Š two majors in the department of international trade; Š two majors in the department of management; Š three majors in the department of commerce; Š five majors in the department of electromechanics; and Š one major in the department of electricity. Note: (1) Higher education is provided by either junior colleges or universities granting different diplomas/degrees. Vocational education includes both secondary vocational education and higher vocational education. Secondary vocational education