Investment Highlights- The first Malaysia-based education service provider to be listed on The Hong Kong Stock Exchange- Established private education service provider in Malaysia with proven track record and growth potential- Kingsley International School is amongst the top 20 international schools in Selangor, Malaysia with these 20 market players accounting for an aggregate market share of approximately 87.8% in 2016 in terms of students enrolment - Strong revenue growth: Recorded a 58.3% YoY increase in FY2016/17 and a 11.2% increase for the four months ended 31 October 2017 compared to the corresponding period in 2016 respectively- New campus facilities and upcoming boarding facilities at the KIS Annex Building, expected to come into use in 1Q 2019, are set to attract both Malaysian and non-Malaysian students- Strive to attract international students from East Asia and other countries in South East Asia with the new campus and boarding options - creating a new income stream from boarding fees

Offering DetailsKingsley plans to offer a total of 200,000,000 shares under the Global Offering (subject to offer size adjustment option), of which 180,000,000 shares will be for International Placing (subject to reallocation and offer size adjustment option) and 20,000,000 shares will be for the Hong Kong Public Offering (subject to reallocation). The indicative offer price range is set between HK$0.40 and HK$0.50 per share.

The Hong Kong Public Offering will commence at 9:00am on 30 April 2018 (Monday) and end at 12:00nn on 4 May 2018 (Friday). The final offer price and allotment results will be announced on 15 May 2018 (Tuesday). Trading of the shares is expected to commence on the GEM of SEHK on 16 May 2018 (Wednesday) under the stock code 8105. The shares will be traded in board lots of 5,000 shares each.

China Everbright Capital Limited is the Sole Sponsor. China Everbright Securities (HK) Limited and Sinolink Securities (Hong Kong) Company Limited are the Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers. Sinomax Securities Limited is one of the Joint Lead Managers of the listing.

Established private education service provider in Malaysia with proven track record and growth potentialKingsley International School ranked approximately 13th out of 37 international schools in Selangor with an approximate market share of 3.0% in terms of the total student enrolment in Selangor in 2016. The Group has steadily grown in terms of enrolment and revenue during the track record period. Its revenue increased by 58.3% year-on-year to RM29.8 million (approximately HK$60.5 million) for the year ended 30 June 2017. For the four months ended 31 October 2017, the Group's revenue increased by 11.2% compared to the corresponding period in 2016 to RM6.4 million (approximately HK$13.0 million)2. Meanwhile, enrolment grew rapidly at a CAGR of 19.4% from 30 June 2013 to 30 June 2017. As at 20 April 2018, Kingsley International School enrolled 987 students.

Strong reputation for student performanceThe students of Kingsley International School achieved a higher distinction rate (attaining A or A*) than the cumulative world percentage as released by Cambridge International Examinations in 14 subjects out of a total of 18 subjects in 2015, 11 subjects out of a total of 17 subjects in 2016 and 12 out of 17 subjects in 2017. Two of its students were awarded and recognised as being the top in Malaysia for First Language English in 2013 and English as a Second Language in 2014 respectively. A number of its graduates who have achieved 8 A* and 9 A* in Cambridge IGSCE are currently studying in prestigious universities around the world, such as London School of Economics and Political Science and University College London.

Experienced senior management team and qualified teachersKingsley is led by an experienced senior management team with extensive knowledge and experience in the Malaysian private education industry. Tan Sri Barry Goh, the Group's founder, chairman and executive director, has over 20 years of experience in various businesses including education, property development and construction and has accumulated vast experiences in corporate governance and formulation of business strategies. Dato' Danny Goh, executive director, has over seven years of experience in strategic planning for the education industry. Dr. Chua Ping Yong, executive director, has more than 25 years of experience in the Malaysia education sector and was the head of school and the dean of Tunku Abdul Rahman University College, Malaysia between July 1990 and April 2015. Ms. Ellis Lee, the current chief executive of Kingsley International School, was formerly associate dean and director of operation of UCSI University. Ms. May King, the current principal of the Kingsley International School, joined the Group in September 2011. During the track record period, four of Kingsley International School's teachers were honoured with "Outstanding Teachers National Outstanding Educator Award" by the Ministry of Education in Malaysia.

New campus and comprehensive facilities upon completion of the KIS Annex BuildingKingsley International School moved into the newly built current campus in September 2015, which accommodates a 10-storey school block with a total of 104 classrooms and other facilities. As at 30 June 2016, there were only eight international schools in Subang Jaya and the surrounding municipals, most of which were built before 20111. The new KIS Annex Building is expected to come into use in the first quarter of 2019, and comprises dormitory rooms with accommodation capacity for approximately 883 students, classrooms with a capacity for approximately 667 students, an Olympic-sized swimming pool, a gymnasium and other facilities. As at 30 June 2016, only 35% of international schools in Malaysia and 26% of international schools in Selangor offered boarding facilities1. The relatively new campus facilities and boarding facilities should enhance the Group's competitiveness in attracting prospective students, as international schools with boarding facilities are considered as more secure and convenient compared to the rented premises outside the campus.

Future Growth StrategiesThe student enrolment in primary and secondary international schools in Selangor, Malaysia is expected to increase at a CAGR of 15.7% between 2017 and 2021. With its established reputation and track record, Kingsley is set to capitalise on the business opportunities presented by the growing private education market.

To increase student enrolment at Kingsley International School and hence overall revenue and profitability, the Group intends to leverage the new facilities, including boarding facilities, of the KIS Annex Building, which is expected to come into use in the first quarter of 2019, to attract both Malaysian and non-Malaysian students. The boarding fee would become a new source of revenue. In addition, the Group plans to upgrade and expand its facilities and employ additional high quality teachers in its education institutions, which will help attract more high quality students to enrol in its schools.

Moreover, the Group will also work with overseas partners and recruitment agents to attract international students from East Asia and other countries in Southeast Asia. While the Group will continue to leverage word-of-mouth referrals based on the established reputation of its Kingsley International School as a main source of attracting new students, it plans to step up its sales and marketing efforts to promote its brand by expanding its cooperation with mainstream media, effectively utilising online media outlets and school websites. At the same time, it would continue to use online social platforms to promote its schools and educational programmes through promotional materials to highlight the schools' advantages and strengthen its brand, and conduct market research to better understand the needs of students and their parents and appropriately tailor the curricula and other education programmes offered by the Group.

Last but not least, while Kingsley International School will continue to be its focus, Kingsley Tertiary Institutions will bolster the Group's capabilities to offer comprehensive education services. As for Kingsley Skills College, more Malaysia Skills Certificates programmes will be developed to cater for the increasing needs of industry for skilled workers. For Kingsley College, more accredited diplomas will be developed. It will also pursue collaboration opportunities with overseas universities for recognition of its diploma programmes. Kingsley College has entered into a cooperation agreement with Sejong University, Korea, under which the University is to admit graduates of the College into the third year of relevant bachelor's degree programmes, subject to meeting admissions criteria. For Kingsley Professional Centre, the curriculum will be broadened by enlisting more external trainers. More marketing staff will also be engaged to approach targeted corporate customers. For Kingsley Language House, more resources will be devoted to acquisition of necessary accreditation and marketing efforts and it has already applied for accreditation as an IELTS test centre and plans to develop English programmes leading to IELTS qualification. In the long run, Kingsley Language House will also promote one-on-one tailor-made training to students by leveraging the English teaching resources of its Kingsley International School.

Financial Highlights

Year ended 30 June Four months ended 31 October(RM'000)(HK$'000)(1) 2016 2017 2017Revenue 18,822,778 29,794,992 6,380,24738,210,239 60,483,834 12,951,901Gross profit 9,556,430 17,458,652 1,807,17619,399,553 35,441,064 3,668,567Net profit 3,196,756 11,782,842(2) 328,419(2)6,489,415 23,919,169(2) 666,691(2)(1). For illustration purposes, the translation of RM into Hong Kong dollars is made at the rate of RM1.00 to HK$2.03.(2). The listing expenses are excluded from the calculation of adjusted financial figures.

Use of ProceedsAssuming the offer size adjustment option is not exercised and the offer price is fixed at HK$0.45 per offer share, being the mid-point of the indicative range of the offer price between HK$0.40 and HK$0.50 per offer share, after deduction of underwriting fees, commissions and estimated expenses payable by the Group in relation to the global offering, the net proceeds from the global offering are estimated at approximately HK$62.5 million and will be used for:

Purposes / ApproximatelyRenovation of the KIS Annex Building: 47.8%Settlement of fees for constructing the KIS Annex Building: 38.1%Purchase of facilities for the KIS Annex Building: 14.1%

About Kingsley EduGroup LimitedKingsley EduGroup Limited is a private education service provider based in Subang Jaya, Selangor, Malaysia. It principally offers courses ranging from Nursery to A-levels Courses primarily based on curricula developed by University of Cambridge International Examinations and England National Curriculum through its Kingsley International School, and tertiary education programmes through its Kingsley Tertiary Institutions, namely Kingsley Skills College, Kingsley Professional Centre and Kingsley College.

Media Enquiries:Strategic Financial Relations LimitedMaggie Au +852 2864 4815 [email protected] Fanny Yuen +852 2864 4853 [email protected]Davis Li +852 2864 4892 [email protected] www.sprg.com.hk^[1][2][3][4]

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