Virscend Education : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30

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Virscend Education Company Limited

成實外教育有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1565)

ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

The board (the "Board") of directors (the "Directors") of Virscend Education Company Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (together, the "Group") for the six months ended 30 June 2017. This announcement, containing the full text of the 2017 interim report (the "2017 Interim Report") of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of interim results.

By order of the Board of

Virscend Education Company Limited Wang Xiaoying

Chairwoman

Sichuan Province, the PRC, 25 August 2017

As at the date of this announcement, the executive directors of the Company are Ms. Wang Xiaoying, Mr. Xu Ming, Mr. Ye Jiayu and Mr. Yan Yude and the independent non-executive directors of the Company are Mr. Sit Chiu Wing, Mr. Chan Kim Sun and Ms. Xu Dayi.

VIRSCEND EDUCATION COMPANY LIMITED JiW SJJt fiPR 6J

(Incorporated in the Cayman Islands with limited liability)

Stock Code:1565

INTERIM REPORT 2017

CONTENTS

Company Profile 2

Corporate Information 3-4

Financial Highlights 5

Management Discussion and Analysis 6-14 Corporate Governance/Other information 15-20

Unaudited Interim Condensed Consolidated Statement of Profit or Loss 21

Unaudited Interim Condensed Consolidated Statement of Comprehensive Income 22

Unaudited Interim Condensed Consolidated Statement of Financial Position 23-24

Unaudited Interim Condensed Consolidated Statement of Changes in Equity 25

Unaudited Interim Condensed Consolidated Statement of Cash Flows 26-27

Notes to Interim Condensed Consolidated Financial Statements 28-36

Definition 37-39

COMPANY PROFILE

Virscend Education Company Limited (stock code: 01565), together with its subsidiaries and consolidated affiliated entities, is a leading provider of pre-school to grade 12 ("K-12") private education services. Through our schools, we provide education services to students in every age group from kindergarten through university. As at 30 June 2017, we had enrollment of an aggregate number of approximately 34,458 students, including approximately 19,791 students at our K-12 schools and 14,667 students at the university, and we employed an aggregate of approximately 2,194 teachers.

As at the end of the 2016/2017 school year, we operate six schools, namely, Chengdu Foreign Languages School, Chengdu Experimental Foreign Languages School, Chengdu Experimental Foreign Languages School (Western Campus), the Primary School Attached to Chengdu Foreign Languages School, the Chengdu Foreign Languages Kindergarten and the Chengdu Institute Sichuan International Studies University, all of which are located in Chengdu, Sichuan Province. Through these schools, we offer formal education with comprehensive education programs from kindergarten through university. We are one of the few private education companies in Sichuan, Guizhou and Yunnan Provinces and Chongqing Municipality ("Southwest China") that offer comprehensive K-12 and university education. This allows us to attract students at an early age and create a stable student pipeline for our schools at each grade within the K-12 system. The Group aspires to provide a pathway to frst-tier universities in China and reputable colleges and universities abroad for interested students. For the National Higher Education Entrance Examinations ("GaoKao") administered in 2015, 2016 and 2017, approximately 77.4%, 87.0% and 94.6% of the Group's graduating high school students who participated in such examinations achieved scores that allowed them to apply to and be accepted by first-tier universities in China, including Peking University, Tsinghua University, Fudan University, Zhejiang University and Shanghai Jiaotong University, among others. Moreover, certain of the Group's high school graduating students were accepted by colleges and universities overseas, including Harvard University, Columbia University, Cornell University and Northwestern University.

Through over 17 years of operating private schools in Chengdu, we believe that we have established a strong reputation, which helps us attract high-quality students and teachers and pave the way for our success. We intend to maintain and strengthen our market position in the private fundamental education industry in China.

2 VIRSCEND EDUCATION COMPANY LIMITED