Hailiang Education Group Inc. (Nasdaq: HLG) 1Q2021 Investor Presentation November 2020 01 01 Company Overview
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Hailiang Education Group Inc. (Nasdaq: HLG) 1Q2021 Investor Presentation November 2020 01 01 Company Overview CONTENTS 0202 Financial Updates 0303 Bussiness Updates 0204 Investment Highlights 1 Company Overview 2 Company Overview One of the Largest Primary & Secondary School Education Service Provider in China . 25 years of educational experience, . 13 affiliated schools with 26,869 started from 1995 students(1) . 42 affiliated and managed schools . Founded by Hailiang Group, which is with 72,846 students(1) one of the Fortune 500 company of the . The school network has expanded to world 7 provinces in China . 2,441 Teachers(1) • China's first private education group for primary, middle and high school . 39 Hailiang educational staff are listed in the United States graduated from Peking University and Tsinghua University(1) (1) As of September 30, 2020 3 Company Overview – Development History FY2012 FY2010 FY2016 High-quality, distinctive, FY2002 Acquired Tianma Zhuji Hailiang Education FY2016 FY1996 international Hailiang Experimental School Park was launched and Hailiang Education FY2017 The first school of Hailiang transformation and Experimental High commenced operation listed on NASDAQ Hailiang Group acquired Education Group School upgrading Hubei Xiantao No.1 Middle Hailiang Foreign Language was launched and School School was launched and started operating started operating FY2018 FY2019 FY2020 FY2021 • Cooperated with Pate’s . Stated management of 4 managed schools: Xinchang . Established International . Managed 2 public schools in Grammar School in United Nanrui Experimental School, Jinhua Hailiang Foreign Headquarters in Singapore Suqian Kingdom Language School, Feicheng Hailiang Foreign Language . Managed 1 public school: . 3 affiliated schools opened: School and Xiantao No.1 Middle School Sihong Second Experimental Lanzhou Hailiang . Managed 5 public schools in Hangzhou: Chunhui School Experimental School, Hailiang Primary School, Xixing Middle School, Wenyan Middle Overseas Chinese School and School, Wenyan Primary School and Wenyan No. 2 . Zhejiang Ningbo Ninghai Wuhu Hailiang Experimental Primary School Public School is under School . Acquired Jiangsu Zhenjiang Jianghe High School of Art construction . Established a friendship school relationship with Morita . Acquired Jinhua Hailiang School from California of United States Foreign Language School . Cooperated with Hikvision to create a smart campus 4 Company Overview – School Network Deployed in 7 Provinces in China with 42 Affiliated Schools and Managed Schools Number of schools 42 36 37 24 29 27 28 16 8 13 8 8 9 9 Covered area FY2017 FY2018 FY2019 FY2020 1Q2021 Not covered area Number of Students Schools Total Number Affiliated Managed Schools under of Students Schools 72,846 Construction (1Q2021) 66,344 9 61,109 Zhejiang 10 (Hailiang Investment 2 33,354 54,684 sponsored 1 school) 45,977 Jiangsu 1 3 - 7,563 42,628 38,290 32,574 1 Shangdong - - (Hailiang Investment 684 20,950 sponsored 1 school) Anhui 1 - - 409 26,869 20,950 22,110 22,819 23,716 Jiangxi - 15 - 22,375 1 FY2017 FY2018 FY2019 FY2020 1Q2021 Hubei - (Hailiang Investment - 7,893 sponsored 1 school) Affiliated Schools Managed Schools Gansu 1 - - 568 5 Company Overview – Development Model . Hailiang Education entered into a strategic cooperation agreement with its parent company Hailiang Group in November 2017; according to the agreement, Hailiang Group will fully entrust Hailiang Education to operate and manage private/public primary and secondary schools that are built, merged and managed by Hailiang Group. Since fiscal year 2018, Hailiang Education has expanded and developed rapidly through the asset-light operation management model, partnering with Hailiang Group (based on the 2017 Strategic agreement), local governments and other third parties. The diversification of the school-running mode is expected to control costs more effectively, create new profit growth points, and facilitate the rapid market expansion and improve the influence of Hailiang education’s brand. Education training and online education business will follow the two-step strategic plan of "online first + online and offline combined model, deep cultivation and far-reaching expansion", and expand overseas markets with a business model that targets both corporate and individual customers. With advanced technology, creating a business ecology of "education + technology", inspire and empower the future of children studying in Hailiang Education. Asset-Light Expansion Mode School Expansion in Recent Years(1) Hailiang Third-party 42 Government 37 Group companies 36 24 29 Private schools Public Schools Land and buildings 27 28 16 8 . Managed School . Lease School 3 3 13 8 8 9 9 3 3 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Affiliated Schools Managed Schools (1) The data of fiscal year 2021 is as of September 30, 2020. 6 Company Overview – Shareholder/Company Structure Brilliant One Fame Best Gain Success Group Jet Victory Public shareholding Development Limited International Limited Limited International Limited Actual Control by Mr. Feng 87.28% 12.72% Hailiang Education Group Inc. 100% Hailiang International Education (NASDAQ:HLG) Group Pte. Ltd. 100% 100% Hailiang Education International Hailiang Education (HK) Limited Studying Service Limited 100% Pate’s – Hailiang International College Company Limited Off-shore On-shore 100% Ningbo Hailiang Education Logistics Zhejiang Hailiang Education Management Co., Ltd Consulting and Service Co., Ltd. Zhuji Nianxin Lake Hotel Co., Ltd. Zhejiang Beize Group Hailiang Feng Co., Ltd. Ningbo Hailiang Sports Development 99.9% 0.1% Co., Ltd. Ningbo Haoliang Information Consulting Hailiang Education Management Co., Ltd Group Co., Ltd. Hangzhou Hailiang international Studying Service Co., Ltd VIE agreement Hangzhou Hailiang Study Trip Co., Ltd. Equity control 7 Company Overview – Management Company Senior Management . Serves as the chairman and chief executive officer of Hailiang Education Group Inc. since 2020 . Serves as a director and principal general of Hailiang Inc. since 2017. Rceived a doctorate degree in Energy and Resource Engineering from Peking University. With the accumulation of 17 years of experience being the principal of Hangzhou No.2 High School with high reputation and rich . Served as the 38th chairman of the postgraduate student’s experience in education. association . PhD candidate from East China Normal University and adjunct Dr. Junwei Chen. Owns multiple patents and has published several academic papers in Mr. Cuiwei Ye professor of many prestigious universities. international journals . Serves as the vice president of Hailiang . Serves as s the vice president of . Serves as the vice president of Hailiang Management since 2018 Hailiang Management since 2019 Management since 2019 . Worked in Hailiang Inc. since 1995 in . Awarded with several honorary titles, such . Joined Hailiang Group since 1998, various functions. Served as the principal as National Outstanding Private teacher, served as the principal of various schools of the Elementary School of Tianma Shaoxing City’s Famous Principle, First for many years, and has won the Experimental School, the principal of Prize of Zhejiang High School Geography honorary titles of "National First Prize of Hailiang Elementary School, vice principal Course since joining Hailiang Education. Mathematics Course", "Famous Principle of Hailiang Inc. and the president of . Received a bachelor degree in geography of Zhejiang Province" and other honorary Hailiang Preschool education group. Mr. Ping Huang Ms. Lei Peng education from Xinjiang Normal University Mr.. Zhougang titles . Received a bachelor’s degree from in 1992, and worked with Grain Zhu . Received a bachelor degree in music Central Broadcast and Television Corporation Futures Trading Department University in 2006 and won various honor in Zhuji from 1993 to 2000 education from Zhejiang Normal awards in the PRC education section University, and is currently pursuing a including Outstanding Teacher of master degree in mathematics at East Zhejiang’s Private Education China Jiao Tong University . Serves as our vice president since 2020 . Serves as our chief financial officer since . Serves as our secretary since 2017 and is responsible for investor relations, 2017 . With extensive experience in corporate mergers and acquisitions, and capital . Received a Bachelor of Science degree in governance, information management, IT markets Accounting and Finance Emphasis (dual governance and SOX compliance degrees) from California State . Received his bachelor's degree in . Prior to joining Hailiang, served as the University,Long Beach and is a member of accounting and master's degree in chief technology officer of Suntech Power AICPA, a licensed Certified Public business administration from Tsinghua (a company listed on NYSE Exchange) University Accountant, in the State of California as Mr. Peng Fan Mr. Jianguo Yuwell as a Certified Internal Auditor with Mr. Litao Qiu and the vice president of Zhejiang Chint . Served in Aesthetic Medical、Cashbus、 Institute of Internal Auditors,with rich Solar Technology Co., Ltd. Dali Foods Group Company Limited and auditing experiences especially expert in Deutsche Bank as key positions prior to GAAS、GAAP and IFRS joining Hailiang . Served in PricewaterhouseCoopers LLP.and Warner Bros as senior auditor and senior internal auditor prior to joining Hailiang 8 Financial Updates 9 Financial Updates – Financial Overview Excluding earnings per FY2019 FY2020 TTM 1Q2020 1Q2021