Investor Introduction to Maple Leaf

The Largest International School Operator in China

  • Headquarters in Dalian, founded by Mr. Sherman Jen in 1995.
  • The largest multi-city K-12 international school network in China.
  • Listed on the Hong Kong Stock Exchange (1317.HK) since November 2014. Market Cap of approximately US$1 billion (as of 1st September, 2017). Member of the Hang Seng Composite Index and the MSCI China Small Cap Index.
  • Maple Leaf offers a bilingual, bi-cultural education. Students graduate with a high school diploma from the Chinese and British Columbia (Canada) governments.
  • 95% of our graduates go on to international universities and colleges. Over 50% go on to World Top 100 Universities.

Our Schools by Category During the Past 21 Years

    Note: Apart the current figures, other figures represented the numbers as of 31 August of the respective school year

Large School Network in China: 15 Cities

    Note:
    * Year of opening signifies date of acquisition.
    + Total capacity in school year 2017/18. Tianjin Taida and Chongqing expansion school will be opened in 2nd semester.
    1 Pingdingshan capacity will be increased from 650 - 1,200 by Sep 2017 due to change of school location.

Middle Class Positioning - Affordable Tuition Fees

Annual Tuition Fees Per Student

School Category Currency 2014/15 School Year 2015/16 School Year 2016/17 School Year (2) Remark
High School RMB 42,400 – 71,500 49,000 – 81,000 49,000 – 100,000 BC Certified Program
Middle School RMB 21,000 – 43,000 21,000 – 43,000 21,000 – 48,000 PRC Compulsory Education
Elementary School RMB 18,000 – 33,000 18,000 – 39,000 18,000 – 43,000 PRC Compulsory Education
Pre-school RMB 14,400 – 21,600 12,000 – 21,600 12,000 – 21,600 Bilingual Program
Foreign National School USD 13,000 – 15,600 13,000 – 15,600 13,000 – 15,600 BC Certified Program
Maple Leaf University School CAD     15,000 BC Certified Program
  • Tuition fees include boarding fees, except for pre-school, foreign national schools, and the Maple Leaf University School inKamloops.
  • Fees are received in advance and recorded as deferred revenue, amortised over the course of the year.
  • Fee increases typically apply only to new school entrants e.g., while new entrants may see fees 23.5% - 31.8% higher in Tianjin andWuhan this year, existing students will not be charged this increase.

Comparison of Selected High School Annual Tuition Fees in Shanghai

Increasingly Asset Light

Current Schools

  Leased Profit Shared Owned
CHINA SCHOOLS
China Pre-Schools 14    
Chongqing 3   3
Dalian 2   4
Haikou     4
Huai’an, Jiangsu 2    
Huzhou   3  
Jingzhou, Hubei     2
Luoyang, Henan   3  
Ordos, Inner Mongolia 2    
Pingdingshan, Henan     3
Pinghu, Zhejiang     2
Shanghai     2
Tianjin 2   3
Weifang, Shandong   3  
Wuhan, Hubei     4
Xi’an, Shannxi   3  
Yancheng, Jiangsu   2  
Yiwu, Zhejiang 1     4
Zhenjiang, Jiangsu     3
INTERNATIONAL SCHOOLS
Kamloops (B.C. Canada) 1    
Richmond (B.C. Canada) 1    
Singapore 2     1
  15 14 15

    Note: As of September 2017
    1. Yiwu campus is owned by Maple Leaf, but built on government allocated land.
    2. Singapore school campus is owned by Maple Leaf, but the school is not yet operated by us.

Market Leader, Fast-Paced Domestic Expansion

Total Number of International Students in China

Source: Frost & Sullivan report as of 31 December 2016

Strong Growth In Enrolments, Internal Progression Within Our System

Strong Growth In Enrolments, Internal Progression Within Our System

Enrolments by Grade (School Year End)

Capacity And Utilisation


Internal Progression from K-12

Established International Curriculum

  • Maple Leaf students graduate with a BC High School Diploma and a Chinese High School Certificate.
  • Established teacher recruitment operations in Canada: the largest employer of Canadian high school teachers after the Canadian government.
  • Most experienced group with established teaching methodologies for teaching Asian students an international curriculum, in English. A smoother transition to an international environment.
  • Maple Leaf has its own curriculum: cloud-based, with detailed lesson plans, providing consistency across our school network, and giving new teachers a head-start when joining our schools. Well-placed for expansion across the Asian region.
  • Maple Leaf’s curriculum is also accredited by AdvancEd, the US-based accreditation organization that workswith over 34,000 schools worldwide.

Curriculum Components

  • Over-arching Statement of Purpose
  • Key Goals and Elements
  • Key Teaching Strategies
  • Subject Department Goals
  • Course Learning Objectives
  • Yearly Course Overview
  • Unit Plans
  • Daily Lesson Plans
  • Assessment Description
  • Course Resources

Teaching Stragies

  • 12 core teaching strategies selected and designed for students whose first language is not English including e.g.
    • Visual Exemplars
    • Scaffolding Lessons
    • Think-Pair-Share (Partner Talk)
    • Frequent Understanding Checks

Unit Plans

  • Essential Questions
  • Prerequisite Knowledge
  • Global Connections
  • Teaching Strategies
  • Suggested Activities
  • Assessment Components
  • Key Vocabulary
  • Linkage with:
    • Curriculum Key Elements
    • ML Course and Department Learning Outcomes
    • BC Provincial Learning Outcomes

Daily Lesson Plans

  • Essential Question
  • Lesson Focus
  • Lesson Objective
  • Key Vocabulary
  • Prior Knowledge
  • Lesson Action Plan
    • Teaching Activities
    • Student Activities
    • ML Strategies
    • Resources

A World of Opportunity for our Students

Over 50% of our Students study at the Top 100 Universities

Our International Strategy

  • Quality International Platform Attractive for Students and Teachers
  • Pathways for Chinese Students into International Universities
  • Transferable between Maple Leaf schools in China and Internationally
  • Chinese High School Certificates can be Awarded Offshore
  • Growing Numbers of PRC Expatriates Working Offshore
  • Large, Middle Class “Overseas Chinese” Community
  • Local Families Looking for Higher Quality Putonghua, Bilingual Education
  • Higher Fees, Increasing Brand Value for Maple Leaf
  • Maple Leaf’s international strategy is a response to growing demand for bilingual Putonghua education, among international students, Chinese families working offshore, and among Chinese students looking to complete their education in their chosen country of tertiary education.
  • The most common complaint we hear among overseas Chinese is that local standards of Putonghua are insufficient. Maple Leaf will put experienced, PRC-native Chinese teachers into every school.
  • Many Chinese expatriate families working offshore struggle to educate their children, and often leave them behind in the PRC. Maple Leaf will be able to award Chinese High School diplomas to students studying at our schools internationally.
  • In 2016, we opened our first pathways Maple Leaf University School, at Thompson Rivers University. We will look for opportunities to use our close connections with international universities to create high schools for Chinese and other international students, allowing them to complete high school in their destination country for future university studies.
  • Internationalization of our schools will have a positive uplift on our brand, inside the PRC. International schools will also enjoy higher average fees, being priced relative to local international schools, while enjoying Maple Leaf’s economies of scale.

Over 40 million Overseas Chinese

Over 500,000 PRC Students Internationally

Maple Leaf University Schools

  • Maple Leaf University School at Thompson Rivers University is the first ever Maple Leaf school outside of China.
  • MLUS is currently set up as a pathways school, offering years 10-12 high school. The initial intake of 60 students all wish to complete their high school on-the-ground, in British Columbia, Canada, before going on to university in Canada.
  • Maple Leaf currently rents classrooms and certain accommodation from the University. Most students are housed in homestays close to the University, organized by the University.
  • Student recruitment is undertaken by Maple Leaf. Students are taught by Maple Leaf teachers, and students wear Maple Leaf student uniforms.
  • Students are able to use TRU’s cafeteria, library, sports facilities, and science labs which are modern and state-of-the-art.
  • PRC students that wish to obtain their Chinese High School certificates while studying offshore at MLUS are expected to be able to do so.
  • Tuition fees have been set at an initial level of C$15,000.
  • Although some students undoubtedly will go on to study at TRU, neither they nor Maple Leaf are under any obligation.
  • Maple Leaf has a close relationship with TRU, and we expect to take a number of teachers who graduate from TRU’s B Ed program.
  • Capacity based on current facilities would be 250 students; anything larger will require a separate facility. TRU has indicated land would be available adjacent to the current campus.
  • A second Maple Leaf University School is scheduled to open September 2017 on the campus of Kwantlen Polytechnic University in Vancouver (Richmond), BC.

Maple Leaf Education Hillside

  • In August 2016, Maple Leaf announced the acquisition of a school premises in Singapore for S$68 million. School sites in crowded cities such as Singapore are very rarely on the market, and Maple Leaf was fortunate to be able to acquire the facility.
  • 11 Hillside Drive is a 4,343sqm city school on a 7,568.8sqm site with 99 years remaining on the lease. It is well-located in a central, middle class area, while private schools in Singapore are increasingly being forced into the outer suburbs.
  • Hillside currently has 30 classrooms, a traditional quadrangle, a multi-purpose hall, music rooms, a library and playgrounds. We expect to have capacity of up to 600 students.
  • It is located 450m from Serangoon Stadium and Swimming Complex, and 1km to Kovan MRT.
  • The school is let to another K-12 school operator until November 2017, with options to renew their lease potentially until 2023, subject to rental increases. The current tenant charges students approximately S$28,000 per annum for tuition, a moderate level, and teaches an IB curriculum in a bilingual environment.
  • The size of the total international school population in Singapore is currently approximately 58,000 students, with total revenues of the sector over S$1.4 billion (US$1.1bn).
  • Maple Leaf will open an Elementary and High school in Singapore at the earliest opportunity, looking to capitalize on the growing PRC population of Singapore, a desire among expatriate parents for bilingual education, and a lack of high quality Putonghua teaching in SE Asia. We expect to attract students from across SE Asia.

Experienced Senior Management Team

Mr. Sherman Jen

Chairman of the Board and Co-CEO
  • Founder of the Group, with over 20 years’ experience in education
  • Honorary Doctor of Laws degree

Mr. James William Beeke

Executive Director, Vice President and Superintendent of Global Education
  • Over 35 years’ experience in education, and a former director/head inspector for the Ministry of Education of the BC provincial government
  • Master of Arts degree and Bachelor of Arts degree from Western Michigan University

Mr. Edward Slade

President, Asia-Pacific and Vice President of Business Development
  • Over 25 years’ experience in investment banking and finance.
  • BA and MA in Modern Languages and Philosophy from Oxford University

Ms. Dawn Sutherland

President, North America
  • Over 20 years’ experience in education management, marketing and teacher recruitment.
  • Head of North America for Maple Leaf, and previously Vice President of Marketing and Development.

Ms. Jingxia Zhang

Executive Director, Senior Vice President and CFO
  • Joined the Group in 1995. Responsible for overall management, financial operations and human resources of our schools
  • Accounting graduate of Jilin Accounting School with over 30 years’ experience in finance and accounting

Mr. Linsheng Chen

Vice President and Chinese Program Superintendent
  • Joined the Group in 2000, with over 15 years’ experience in education
  • Bachelor’s degree in Chinese from Hunan Normal University

Mr. Bob Gardner

Vice President and BC Program Superintendent
  • Over 30 years’ experience in management and teaching in Canadian education. Responsible for overseeing all BC programs.
  • B Ed from University of Saskatchewan and M Ed from University of Alberta

Mr. Xiaofeng Cao

Vice President
  • Doctorate in Educational Management from Beijing Normal University, Master of Labor Economics from Renmin University of China and Bachelor’s degree from Wuhan Textile Engineering Institute. Responsible for school construction projects and general affairs.

Strong Financial Base

Revenues (RMB mn)

EBITDA (RMB mn)

Net Income (RMB mn)

Cash (RMB mn)

Disclaimer

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