Hq Global Education Inc · OTC:HQGE
Hq Global Education — Investor Presentation (March 2011)
29 slides from Hq Global Education's investor presentation, Mar 15, 2011
Slide 1: HQ Global Education Inc.
HQ GLOBAL EDUCATION INC. FRAREFT OTCBBOHQGE NRT www.hq-education.com wtih,
Slide 2: Safe Harbor Statement
Safe Harbor Statement Ny Fmt Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements made in the presentation are forward- looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 19
Slide 3: Our Commitment
OUR COMMITMENT High Quality, High Brand Recognition, High Skill levels, High Growth Sharing Resources Between Schools, Markets and Enterprises Improve the quality of human resources - Transfer rural labor force - Develop Labor economy
Slide 4: Company Overview
Company Overview NOY @ Founded in 1994, headquartered in Changsha, Hunan Province, China @ Leading provider of customized vocational training and private education 10 vocational schools : 4 private and 6 public schools @ Unique business model: order-oriented education model Customized training contr
Slide 5: 14000000 13,571,118.00 10,667,175.00 7,797,558.00 6000000 5,484,780.00
14000000 13,571,118.00 10,667,175.00 7,797,558.00 6000000 5,484,780.00
Slide 6: Revenue Streams
Revenue Streams Fmt FY 2010 New Revenue Streams in FY 2011- 2013 Tuition 61% | ) e- 6, op Textbook Selling =) 4
Slide 7: Income Statement and Balance Sheet
tn Millions Revenue Gross Profit: GP Margin ‘Operating income: Net income: EPS Basic and Diluted * Based on 20.5 million shares tn Millions cash Current Assets: Total Assets: Current Liabilities: Total Labiltes: ‘Total shareholders Equity Income Statement Fiscal 2011 Q4 Ending 11/30/2010 $166 65 39.
Slide 8: Financial Snapshot
Financial Snapshot — EE Fiscal Year End August 1" oan Ore aoe Recent Events Stock Price (3/1/2011) $3.00 i /ig/2041 announces ‘Shares Outstanding gaM Exchangeable Bond Float 5M Transaction on Behalf of - Its Principal Shareholder Market Cap $ooM Fiscal Q1 2011 Revenue $16.6MA 28 % YOY 1/ cee 11 — Re
Slide 9: Strong Financial Performance
Strong Financial Performance RRA Fiscal Year End Revenue and Net income (in millions) _ Fiscal Q1 Revenue, Gross Profit & Net income (in millions) 2008 2009 2010 ma Revenue mm Annual Revenue = Gross Profit = Net Income = Net Income
Slide 10: Revenue Streams by Quarter
Revenue Streams by Quarter aaee (in million) Tato Sa] SE) aa) aT] SEE sar] su] 83] 512) sia era08]| a Ss a TE =) ea] aerwam | Taal sao} ss] sir] sa] es] —t68 Fiscal 2011 Q4 Revenue Stream Breakdown Order- oriented Service 12% 10
Slide 11: School Network Detail
School Network Detail s2noot crangsna | saosnan | snzo sso tu [sm | mg | cu stan rate fa i atan sno gem | men | Jing eS ‘a3 0 00 race | 2008 | 2008 | 2008 | soe equi ution Revenue si = ed va] sa| =) ss| se epee sa et 079 wo) ax| ss] ss] su capo ate 20 3 33 at] osf a7 ae ‘cunt cape oo os os we | om |
Slide 12: Experienced Management Team
Experienced Management Team NY Mr. Guangwen He, Doctor of education, was born on July 8,1968 in Ningxiang County, Hunan Province. He is currently CEO of HQ Global Education Inc. and his other titles include the director of China Association of Private Education, the vice- president of Hunan Associat
Slide 13: Experienced Management Team
Experienced Management Team Male. Mr. Fang was bom in 1965 in Huangshi City, Hubei Province. He received : his Bachelor Degree of Accounting from Zhongnan University of Economics and Law in 1989 and became a Chinese Certified Tax Agent in 2000. Mr. Fang has 15-year investment management experience f
Slide 14: Experienced Management Team
Experienced Management Team Shimin Gan HR Manager Junming Peng Director Chairman of the Compensation committee RBA 14
Slide 15: Experienced Management Team
Experienced Management Team i i Principal Principal Principal Principal Principal Eealang eno Ming Huang sienna ‘ynchan ang xan Chen tunan SharehenVoatoral Hunan ShecyangVecatoral © HinenNNewe. Shane Tanahen MOSchod__SthusnTanguan Schoal sehocl petoeaeie Vocstion| Soho eee Principal Pring = a anche
Slide 16: Competitive Advantages
Competitive Advantages Huge student WT iiese Provinces 26 {Business ethnicities) RBA is
Slide 17: Unique Business Model
Unique Business Model Dl Order-oriented Education Contracts with 128 enterprises acer lenovo. PHilPs sense and simplicity ) foxconm Hanssen FLEXTRONICS Ps tee RLM reneenen, —KoTIRLF ER (REAR i a TAZ Le aka SHER
Slide 18: Managing Public Schools
Managing Public Schools HQ takes over the management of public schools from local governments The government still owns the schools, pays teachers salaries and help recruit students Such agreement is usually for 15-20 years ¢ HQ is responsible for the entire operations and receives 100% revenue and
Slide 19: School Locations
School Locations Locations of HO Subordinate Schools 19
Slide 20: Training Programs
“Machinery 1 ‘Fashion Design Electronics E-commerce Tourism & Hotel Management Finance Language | drawing. 3D MAX, Photoshop, Flash, Visual Basic, Animation design, Imaging &word processing Tailor, Cutter, Designer, Draughtsman, Pattern maker Electrician, Welder, Electro cuit overhaul, Electror icat
Slide 21: Huge Student Market
“Huge Student Market = (ss [ I pe @ 37,408 students from 25 provinces as of November 30, 2010 HQ Global Student Number 37408 4 34477 pone 22833 22513 18027 2006 «2007 «2008 | 2009 2010 201101 24
Slide 22: Brand Recognition
Brand Recognition ARKH aiMay rnsyyntes Oe Am ee RE RARRR | UILRLEHMS a a # mf ¥ a z 3 22
Slide 23: 100% Student Placement Rate
100% Student Placement Rate RT @Customized training contracts with 128 employers. @Students acquire skills needed to meet specific job requirements. @Two-year follow-up management for employed students. 23
Slide 24: Government Support
Government Support | tr zhixiang Tang, Vice | Governor of Hunan ‘Mr. Yucheng Lu, former Deputy Mayor of Bejing Cityand President of China Overseas ‘Me Jinshi Yang, Deputy Director of Vocational & ‘Adult education People's Government Department of visited HO Global in Educated Scholars Education Mini
Slide 25: Awards and Recognition
‘Trustworthy Enterprise grarted by huran Special Contribution award ofthe Promotion Provineal Banking Assocation in 2002 ‘WorkofcpPcc granted by CPPCC National commttee'n Fab 2005 PRE RT = PAWNS HQ Globa's participation in Rain-dew Plan (Poverty Alleviation Program) was reported by many famous media
Slide 26: Growth Strategies
Growth Strategies SE CO seen New Schools: v Acquire private schools and managing public schools Capacity Expansion: v ~ Capacity expansion plan — Adopt flexible class and internship schedule Investing in additional capacity New Training Programs: v New training areas to be offered based on demand On
Slide 27: New Growth Impetus
New Growth Impetus I = c I Distance Professional Hunan Textbook Network Certification Resources Publishing & Education Program Service Selling 7
Slide 28: Education Market Analysis
Education Market Analysis RBA Populationin China Tiational Strategies Tiational Policies Tax Exemption a4 bien il (2220m students Not in the wove E20 farmers ($40m Wing in very ‘dena noore lan than Rwwe2o000 Pere SLomevel sovest Stusene! 20 milion Note: Low-ieya eostes Susans reerto masle school grc
Slide 29: Mr. Guangwen He, Founder, Chairman & CEO
Mr. Guangwen He, Founder, Chairman & CEO Tel:(+86 731) 88873727 :(486 731)88719797 27* Floor, BOBO Fortune Center 368 South Furong Road Changsha, Hunan, China 410007 gw.he@ha-education.com www.HQ-Education.com
HQ Global Education — Investor Presentation (March 2011) on 6ix