Appendix Iii Property Valuation Report

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. APPENDIX III PROPERTY VALUATION REPORT

The following is the text of a letter, summary of valuations and valuation report prepared for the purpose of incorporation in this document received from Cushman & Wakefield Limited, an independent property valuer, in connection with its opinion of values of the Group in the PRC as at 31 January 2020.

16th Floor Jardine House 1 Connaught Place Central Hong Kong

The Directors Leader Education Limited

RE: PORTFOLIO VALUATION [●] February 2020

Instructions, We refer to the instruction of Leader Education Limited (the Purpose & “Company”) for Cushman & Wakefield Limited (“C&W”) to prepare Valuation Date market valuations of the properties in which the Company and/or its subsidiaries (together referred to as the “Group”) have interests in the People’s Republic of China (the “PRC”). We confirm that we have carried out inspection, made relevant enquiries and obtained such further information as we consider necessary for the purpose of providing the Company with our opinion of the values of the properties as at 31 January 2020 (the “valuation date”).

Valuation Basis Our valuation of each of the properties represents its market value which in accordance with The HKIS Valuation Standards 2017 Edition issued by The Hong Kong Institute of Surveyors is defined as “the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”.

We confirm that the valuations are undertaken in accordance with The HKIS Valuation Standards 2017 Edition issued by The Hong Kong Institute of Surveyors.

In valuing the property, we have complied with the requirements set out in Chapter 5 and Practice Note 12 of the Rules governing the Listing of Securities published by the Stock Exchange of the Hong Kong Limited.

We also confirm that we are an independent qualified valuer, as referred to Rule 5.08 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

Our valuation of each of the properties is on an entirety interest basis.

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Valuation Our valuations of the properties exclude an estimated price inflated or Assumptions deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangement, special considerations or concessions granted by anyone associated with the sale, or any element of value available only to a specific owner or purchaser.

In the course of our valuation of the properties, we have relied on the advice given by the Company’s legal adviser, Jingtian & Gongcheng, regarding the titles to the properties and the interests of the Company in the properties in the PRC. Unless otherwise stated in the respective legal opinion, in valuing the properties, we have assumed that the Group has an enforceable title to the properties and has free and uninterrupted rights to use, occupy or assign the properties for the whole of the respective unexpired land use term as granted and that any premium payable has already been fully paid.

In respect of the properties situated in the PRC, the status of titles and grant of major certificates, approvals and licences, in accordance with the information provided by the Company are set out in the notes of the respective valuation report. We have assumed that all consents, approvals and licences from relevant government authorities for the developments have been obtained without onerous conditions or delays. We have also assumed that the design and construction of the properties are in compliance with the local planning regulations and have been approved by the relevant authorities.

No allowances have been made in our valuations for any charges, mortgages or amounts owing on the properties nor any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the properties are free from encumbrances, restrictions and outgoings of any onerous nature which could affect their values.

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Method of In valuing property nos. 1 and 2, due to the specific nature of the Valuation properties and lack of sales transactions of the properties of the same characteristics in the vicinity, we have adopted the Depreciated Replacement Costs (“DRC”) Method. The DRC Method is based on an estimate of the market value of the land in its existing use, plus the current cost of replacement of the improvements, less allowance for physical deterioration and all relevant forms of obsolescence and optimisation. For the land portion, we have made reference to comparable land sales evidence as available in the relevant market subject to appropriate adjustments including but not limited to location, time, size etc. The DRC Method is subject to service potential of the entity from the use of assets as a whole paying due regard to the total assets employed. The market value arrived using the DRC Method applies to the whole of the complex or development as a unique interest, and no piecemeal transaction of the complex or development is assumed.

In valuing property no. 3, we have used the Direct Comparison Approach assuming sale of each of these properties in its existing state by making reference to comparable land sales transactions as available in the relevant market and have taken into account reasonably incurred land improvement costs, if any. This method is the most appropriate method for valuing land properties.

We have assigned no commercial value to the property nos. 3 and 4 as the properties will be disposed of by the Group.

Source of In the course of our valuation, we have relied to a very considerable Information extent on the information given to us by the Group regarding the title to the property and the interests of the Group in the property. We have accepted advice given by the Group on such matters as planning approvals or statutory notices, easements, tenure, identification of land and buildings, particulars of occupancy, tenancy details, site and floor areas, site and floor plans, completion date of buildings, number of parking spaces, interest attributable to the Group and all other relevant matters.

Dimensions, measurements and areas are based on the copies of documents or other information provided to us by the Company and are therefore only approximations. No on-site measurement has been carried out. We have had no reason to doubt the truth and accuracy of the information provided by the Company which is material to the valuations. We were also advised that no material facts have been omitted from the information provided to us.

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Title Investigation We have been provided with copies of the title documents relating to the properties but have not carried out any land title searches. Moreover, we have not inspected the original documents to verify ownership or to ascertain any amendments which may not appear on the copies handed to us. We are also unable to ascertain the title of the properties in the PRC and we have therefore relied on the advice given by the Company regarding its interests in the properties.

In the course of our valuation, we have relied to a considerable extent on the information given by the Group, in respect of the title to the properties in the PRC.

Site Inspection Ms. Liven Xu and Ms. Wendy Hou of our Dalian Office who are Registered China Real Estate Appraiser, inspected the exterior and, where possible, the interior of the properties on 19 September 2019.However, no structural survey has been made, but in the course of our inspection, we did not note any serious defects. We are, however, not able to report that the properties are free of rot, infestation or other structural defects. No test was carried out on any of the services. Our valuations are prepared on the assumption that these aspects are satisfactory.

Unless otherwise stated, we have not carried out detailed on-site measurements to verify the site and floor areas of the properties and we have assumed that the areas shown on the documents handed to us are correct.

Currency Unless otherwise stated, all monetary amounts stated in our valuation report are in Renminbi (“RMB”), the official currency of the PRC.

Confirmation of We hereby confirm that C&W and the undersigned have no pecuniary Independence or other interests that could conflict with the proper valuation of the properties or could reasonably be regarded as being capable of affecting our ability to give an unbiased opinion.

Intended Use and This valuation report is issued only for the use of the Company for User of Report incorporating into its document.

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We enclose herewith a summary of valuations and our valuation report for your attention.

Yours faithfully, For and on behalf of Cushman & Wakefield Limited Andrew K. F. Chan MSc, MRICS, FHKIS, MCIREA, RPS(GP) Managing Director Valuation & Advisory Services, Greater China

Note: Andrew K.F. Chan is a member of the Royal Institution of Chartered Surveyors, a Fellow Member of the Hong Kong Institute of Surveyor and Registered Professional Surveyor (General Practice). Mr. Chan has over 30 years of experience in the professional property valuation and advisory services in the Greater China region and various overseas countries. Mr. Chan has sufficient current national knowledge of the market, and the skills and understanding to undertake the valuations competently.

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SUMMARY OF VALUATIONS

Market value in existing state as at Market value in Attributable 31 January 2020 existing state as at interest to attributable to Property 31 January 2020 the Group the Group (RMB) (%) (RMB)

GroupI–Properties held and occupied by the Group in the PRC

1. Songbei campus (松北校區) No Commercial Value 100 No Commercial Value Hulan District, Harbin City, Heilongjiang Province the PRC

2. Hanan campus (哈南校區) No Commercial Value 100 No Commercial Value Shuangcheng District, Harbin City, Heilongjiang Province the PRC

Sub-total: No Commercial Value No Commercial Value

Group II – Property held by the Group for future development in the PRC

3. A parcel of land of Dongguang 24,000,000 100 24,000,000 Village (東光村) Zhoujia Town Shuangcheng District, Harbin City, Heilongjiang Province the PRC

Sub-total: 24,000,000 24,000,000

Group III – Properties to be disposed of by the Group

4. Various commercial units of Phase No Commercial value 100 No Commercial value I and II and car parking spaces of Xiangge Garden (祥閣花園), Shuangcheng District, Harbin City, Heilongjiang Province the PRC

5. Various residential units of Limin No Commercial value 100 No Commercial value Xueyuan (利民學苑), Hulan District, Harbin City, Heilongjiang Province the PRC

Total: 24,000,000 24,000,000

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VALUATION REPORT

GroupI–Properties held and occupied by the Group in the PRC

Market value in Particulars of existing state as at Property Description and tenure occupancy 31 January 2020

1. Songbei campus Songbei campus comprising As at the valuation No Commercial Value (松北校區) various buildings erected upon a date, the property was (see note 1) Hulan District, parcel of land with a site area of occupied by the Harbin City, 144,095.00 sq m. Group for educational Heilongjiang and ancillary Province The campus comprises various 1 purposes. the PRC to 8 – storey buildings completed in the period between 2006 to 2012.

The property comprises various teaching buildings, dormitories, teaching complex and ancillary facilities with a total gross floor area of 169,818.33 sq m.

For portions of the property with building ownership certificate, a total gross floor area of 164,418.09 sq m, relevant certificates and approval in respect of construction issued by the government have been obtained with details as follows:–

Gross Floor Use Area (sq m)

Teaching 57,077.20 buildings ...... Dormitories ..... 69,517.86 Teaching 23,751.94 complex ...... Ancillary 14,071.09 facilities ......

Total: ...... 164,418.09

Building ownership certificate of a building of the property with a gross floor area of 5,400.24 sq m had not been obtained.

The property is located in the sub urban area of Harbin. Developments nearby are mainly university town in nature. According to the information provided by the Group, the property is for university campus uses.

The land use rights of the property have been allocated to the Group for scientific research use, the expiry date of the land use rights is unspecified.

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Notes:–

(1) In the valuation of this property, we have attributed no commercial value to the property due to the allocated land nature of the property. However, for illustrative purpose, we are of the opinion that the depreciated replacement cost of the property would be in the sum of RMB406,000,000 (RENMINBI Four Hundred and Six Million) as at the valuation date.

(2) According to State-owned Land Use Rights Certificate No. (2016) 0377 dated 16 May 2016 issued by the Harbin Land Resources Bureau (哈爾濱國土資源局), the land use rights of the property with a site area of 144,095 sq m has been vested through administrative allocation in 黑龍江工商學院 for scientific research use.

(3) According to twenty one Building Ownership Certificates, the building ownership of the property comprising a total gross floor area of 164,418.09 sq m has been vested in 黑龍江工商學院 with details as follows:–

Certificate No. Date of issue Use Gross floor area (sq m)

HL16102360 ...... 25February 2016 Teaching building 28,492.16 HL16102367 ...... 25February 2016 Teaching building 28,585.04 HL16102373 ...... 25February 2016 Teaching complex 7,701.01 HL16102363 ...... 25February 2016 Teaching complex 7,238.84 HL16102370 ...... 25February 2016 Teaching complex 4,701.44 HL16102378 ...... 26February 2016 Teaching complex 4,110.65 HL16102366 ...... 25February 2016 Ancillary facilities 10,338.24 HL16102371 ...... 25February 2016 Ancillary facilities 1,228.15 HL16102372 ...... 25February 2016 Ancillary facilities 459.70 HL16102362 ...... 25February 2016 Dormitories 8,133.67 HL16102380 ...... 25February 2016 Dormitories 3,196.50 HL16102365 ...... 25February 2016 Dormitories 8,300.52 HL16102364 ...... 25February 2016 Dormitories 3,547.80 HL16102375 ...... 25February 2016 Dormitories 10,353.89 HL16102376 ...... 25February 2016 Dormitories 3,547.80 HL16102377 ...... 25February 2016 Dormitories 10,352.52 HL16102361 ...... 25February 2016 Dormitories 3,547.80 HL116102374 ...... 25February 2016 Dormitories 10,339.06 HL16102379 ...... 25February 2016 Dormitories 3,353.30 HL16102368 ...... 2March 2016 Dormitories 4,845.00 HL16102369 ...... 2March 2016 Ancillary facilities 2,045.00

Total: 164,418.09

(4) We have been provided with a legal opinion on the property prepared by the Company’s PRC legal adviser, which contains, inter alia, the following information:

(a) 黑龍江工商學院 is the sole legal land user of the portions of the property with building ownership certificate; and

(b) 黑龍江工商學院 has the right to use the portions of the property with building ownership certificate in accordance with the legal use.

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VALUATION REPORT

Market value in Particulars of existing state as at Property Description and tenure occupancy 31 January 2020

2. Hanan campus Hanan campus comprising As at the valuation No Commercial Value (哈南校區) various buildings erected upon a date, the property was (see note 1) Shuangcheng parcel of land with a site area of occupied by the District, Harbin, 397,914.04 sq m. Group for educational Heilongjiang and ancillary Province The campus comprises various 1 purposes. the PRC to 5 – storey buildings completed in the period between 2014 to 2019.

The property comprises various teaching buildings, dormitories, teaching complex and ancillary facilities with a total gross floor area of approximately 138,876.30 sq m.

For portions of the property with building ownership certificate, a total gross floor area of 54,566.30 sq m, relevant certificates and approval in respect of construction issued by the government have been obtained with details as follows:–

Gross Floor Use Area (sq m)

Teaching complex ...... 54,566.30

Building ownership certificates of ten buildings of the property with a total gross floor area of 84,310 sq m had not been obtained.

The property is located in the sub urban area of Harbin. Developments nearby are mainly farmland in nature. According to the information provided by the Group, the property is for university campus uses.

The land use rights of the property have been allocated to the Group for scientific research use, the expiry date of the land use rights is unspecified.

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Notes:–

(1) In the valuation of this property, we have attributed no commercial value to the property due to the allocated land nature of the property. However, for illustrative purpose, we are of the opinion that the depreciated replacement cost of the property would be in the sum of RMB515,000,000 (RENMINBI Five Hundred and Fifteen Million) as at the valuation date.

(2) According to two Building Ownership Certificates, the building ownership of the property comprising a total gross floor area of 54,566.30 sq m. has been vested in 黑龍江工商學院. The land use rights are obtained through administrative allocation with a total site area of 397,914.04 sq m. for scientific research use. The details are as follows:–

Gross floor Certificate No. Date of issue Use Site area area (sq m) (sq m)

(2017) 0000456 ...... 30November 2014 Education 397,914.04 16,350.40 (2017) 0000455 ...... 30November 2014 Education 397,914.04 38,215.90

Total: 54,566.30

(3) According to Planning Permit for Construction Use of Land issued by 雙城市城鄉規劃局 (Urban and Rural Planning Bureau of Shuangcheng Municipal) on 14 July 2015, the construction site of land with a site area of 340,136 sq m are in compliance with the urban planning requirements and have been approved.

According to Approval for Construction Use of Land (建設用地批准書) issued by 雙城市國土資源局 (Land Resources Bureau of Shuangcheng Municipal) on 30 August 2019, the construction site of land with a site area of 397,913.00 sq m are in compliance with the urban planning requirements and have been approved.

(4) According to Planning Permit for Construction Works No. SGCT20180000069-G069 issued by 雙城市城鄉規劃局 (Urban and Rural Planning Bureau of Shuangcheng Municipal) 21 November 2018, the construction works with a total gross floor area of 84,310.00 sq m are in compliance with the urban planning requirements and have been approved.

(5) According to three Permits for Commencement of Construction Works issued by 哈爾濱市雙城區住房和城鄉建設局 (Housing and urban-rural Construction Bureau of Shuangcheng District, Harbin Municipal) dated 6 September 2019, the property is in compliance with the requirements for works commencement and have been permitted. The details are as follow:

Certificate No. Date of issue Gross floor area (sq m)

2301821811290108-SX-014 ...... 6September 2019 46,966.55 2301821811290108-SX-015 ...... 6September 2019 21,283.62 2301821811290108-SX-016 ...... 6September 2019 16,059.83

84,310.00

(6) We have been provided with a legal opinion on the property prepared by the Company’s PRC legal adviser, which contains, inter alia, the following information:

(a) 黑龍江工商學院 is the sole legal land user of the portions of the property with building ownership certificate; and

(b) 黑龍江工商學院 has the right to use the portions of the property with building ownership certificate in accordance with the legal use.

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VALUATION REPORT

Group II – Property held by the Group for future development in the PRC

Market value in Particulars of existing state as at Property Description and tenure occupancy 31 January 2020

3. A parcel of land of The property comprises a parcel As at the valuation RMB24,000,000 Dongguang Village of land with a total site area of date, the property was (RENMINBI Twenty (東光村) 36,221.40 sq m. vacant. Four Million) Zhoujia Town Shuangcheng The property is located to the District, south side of Hanan campus, Harbin, Developments nearby are mainly Heilongjiang surrounded by villages and Province agricultural land. the PRC The land use rights of the property have been granted for a term due to expire on 17 October 2052 for commercial use.

Notes:–

(1) According to the State-owned Land Use Rights Certificate No. (2012) 2535 issued by 雙城市國土資源局 (Shuangcheng State-owned Land Resources Bureau) on 29 November 2012, the land use rights of the property with a site area of 36,221.40 sq m have been vested in 哈爾濱祥閣房地產開發有限公司.

(2) According to Grant Contract of Land Use Rights No. 2301822012B00213 dated 18 October 2012, the land use rights of the subject development, in which the property is located thereon, with a site area of 36,221.40 sq m have been granted to 哈爾濱祥閣房地產開發有限公司.

(3) We have been provided with a legal opinion on the property prepared by the Company’s PRC legal adviser, which contains, inter alia, the following information:

(a) 哈爾濱祥閣房地產開發有限公司 is the sole legal land user of the property; and

(b) 哈爾濱祥閣房地產開發有限公司 has the right to transfer the property.

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VALUATION REPORT

Group III – Properties to be disposed of by the Group

Market value in Particulars of existing state as at Property Description and tenure occupancy 31 January 2020

4. Various The property comprises various As at the valuation No Commercial Value commercial units commercial units and 7 car date, the property was of Phase I and II parking spaces of a occupied by the and car parking comprehensive development Group. spaces of Xiangge completed in 2011. Garden (祥閣花園), Shuangcheng The property has a total gross District, Harbin, floor area of 3,250.55 sq m. Heilongjiang Province The property is located in the the PRC sub urban area of Harbin. Developments nearby are mainly residential buildings. According to the information provided by the Group, the property is for commercial and car parking uses.

The land use rights of the property have been granted for a term due to expire on 1 April 2050 for commercial use.

Notes:–

(1) We have assigned no commercial value to the property as the property will be disposed of by the Group.

(2) According to eight Real Estate Title Certificates, the building ownership of the property comprising a total gross floor area of 3,060.53 sq m has been vested in 哈爾濱祥閣房地產開發有限公司 with details as follows:–

Certificate No. Use Gross floor area (sq m)

(2018) 0012812 ...... Commercial 413.81 (2016) 0000605 ...... Commercial 272.16 (2016) 0000561 ...... Commercial 272.16 (2018) 0012813 ...... Commercial 450.55 (2017) 0001275 ...... Commercial 656.98 13-A0023271 ...... Commercial 272.16 13-A0023269 ...... Commercial 272.16 13-A0023270 ...... Commercial 450.55

Total: 3,060.53

(3) According to various survey reports, portions of the property (7 car parking spaces) have a total gross floor area of 190.02 sq m.

(4) We have been provided with a legal opinion on the property prepared by the Company’s PRC legal adviser, which contains, inter alia, the following information:

(a) According to the agreement entered into between 哈爾濱祥閣房地產開發有限公司 and 哈爾濱祥振引城置業有限公司 on 6 August 2019, the assets including the property owned by 哈爾濱祥閣房地產開發有限公司 will be inherited by 哈爾濱祥振引城置業有限公司. The agreement is legally valid and binding.

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VALUATION REPORT

Market value in Particulars of existing state as at Property Description and tenure occupancy 31 January 2020

5. Various residential The property comprises various As at the valuation No Commercial Value units of Limin residential units of a residential date, the property was Xueyuan development completed in 2013. occupied by the (利民學苑) Group. Hulan District, The property has a total gross Harbin, floor area of 1,262.10 sq m. Heilongjiang Province The property is located in the the PRC sub urban area of Harbin. Developments nearby are mainly university buildings. According to the information provided by the Group, the property is for residential use.

The land use rights of the property have been granted for a term due to expire on 22 February 2080 for residential use.

Notes:–

(1) We have assigned no commercial value to the property as the property will be disposed of by the Group.

(2) According to four Building Ownership Certificates, the building ownership of portions of the property comprising a total gross floor area of 442.56 sq m has been vested in 哈爾濱祥閣房地產開發有限公司 with details as follows:–

Certificate No. Use Gross floor area (sq m)

(2018) 0022423 ...... Residential 123.75 (2018) 0022425 ...... Residential 106.27 HL14101752 ...... Residential 106.27 HL14101763 ...... Residential 106.27

Total: 442.56

(3) According to various survey reports, portions of the property have a total gross floor area of 819.54 sq m.

(4) We have been provided with a legal opinion on the property prepared by the Company’s PRC legal adviser, which contains, inter alia, the following information:

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