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Lion City Education Kindercoin CRYPTOCURRENCY POWERING EDUCATION

Table of Contents Introduction China Opportunities and Challenges Shandong – Where Lion City Education Is Introduction of Lion City Education

pg. 3 pg. 4 pg. 7 pg. 11

Lion City Education Achievements

pg. 13

Lion City Education Strengths

pg. 15

Lion City Media Coverage

pg. 18

Lion City Education Team

pg. 20

Lion City Education Roadmap and Milestones

pg. 22

KinderCoin

pg. 25

KinderCoin Benefits & Risks

pg. 27

KinderCoin Initial Coin Offering Details

pg. 28

KinderCoin Crowdfunding Distriution

pg. 30

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Lion City Education - KinderCoin

Introduction of KinderCoin The KinderCoin is a token linked to a real fast growing education business in China’s growing education sector. KinderCoin will be used to build schools and for token owners, a chance to diversify their assets and gain exposure into a sector and location with high barriers to entry. An attractive 80% of the project’s profits will also go towards KinderCoin. KinderCoin uniquely combines 4 elements: • It uses ICO as a platform

• It integrates Lion City Education and makes use of its brand and business model to grow in capital value with the education business • KinderCoin is a utility token that parents can use to pay for courses and it also blends in a philanthropy aspect as each KinderCoin token can voluntarily be pledged for charity for the unfortunate students, and over time as it appreciates higher, more students will benefit.

• Lastly, as the expansion plans of Lion City Education take place, the quick timeframe to start receiving cash flow and the appreciation of its brand and assets will be reflected in KinderCoin’s value appreciation. Based on the total portfolio of schools Lion City Education has currently, taking into account the current valuation (DCF Analysis) vs the start-up costs, every $1 that is invested in starting a school is expected to gain around 623% within 6 months. As all the funds are progressively utilised over 1 to 1.5 years, we expect KinderCoin’s price to gain 600+% accordingly over the same timeframe.

ICO Platform

Strong Brand

Philanthropy 180 Day Growth 3


China Opportunities and Challenges Education is getting more lucrative due to China’s 2nd child policy change, higher incomes and the high emphasis placed by Chinese parents’ on education. In 2015 China amended its policy to allow couples to have a 2nd child without penalties and this took effect on 1 January 2016. The result was a baby boom in China, as more than 18.46 million babies were born in mainland hospitals in 2016 – 11.5 per cent more than 2015 based on data given by Yang Wenzhuang, a division director at the National Health and Family Planning Commission. The trend of greater emphasis on and competition in education is also accelerating over each generation. In its 2nd largest province, Shandong: • had 7,612,675 citizens with a Bachelor degree education in the 3539 years old age group (based on the 2010 population census) • for the 30-34 years old age group, that number stood at 8,507,756 • for the 25 to 29 years old age group, that number jumped to 11,184,322.

Each younger generation is getting increasing educated and having more educational ambitions. This is only based on the latest available data in the 2010 population census. There is much more emphasis over the past 7 years, evident from competitive university admissions, and how students are pushing themselves to over-achieve also in non-academic areas to buff up their profile. In fact this is a global phenomenon, but what makes China a notch up higher in his education emphasis is there is too much competition from the large hardworking population, and Asian parents are willing to spend on education since the national college examinations, Gaokao, is the only way to rise in social status.

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China Opportunities and Challenges Competitiveness of Entry Chinese Colleges

Source: TAL Education, 2017

As seen in the graph above, the admission rate for the top 154 Chinese Universities are lower than even the top 50 US colleges. Rising incomes: Nearly 50% Households Earn More Than 5000 Yuan a Month In 2016

Source: Lion City Education

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China Opportunities and Challenges Portion of Income Each Household Spend on Education

Source: Lion City Education

The graph above shows each income group, with the households earning less than 5000 yuan per month from the left all the way to those earning 30000 yuan per month, and the portion of income that they spend on Education. Clearly each higher income bracket spends a greater portion of income on education. As China’s incomes increase over time, this will mean more money will flow into education services. Thus, many have sought after education businesses in China but the demanding Chinese parents and students are not easy to win over. KinderCoin allows investors to gain exposure in China’s education sector which is normally not readily available without local connections and experiences. Businesses in China are very tough for foreign entities to start and thrive. Harder still to acquire is the government support that practically all successful businesses in China must have.

Increases in Chinese income have led to an increase in education spending. 6


Shandong – Where Lion City Education is In the 2010 population consensus, Shandong province has the highest population after Guandong at 95,792,719. As of 2016 that figure has risen to about 98.47m in population with 16.62% comprising of the 0-14 years of age group which is the target market for education. Traditionally Shandong is also consistently known as one of the top 2 provinces most willing to procreate. The number of new-borns in 2015 for Shandong was 1,240,000 and in 2016 the number was 1,770,000. This is a staggering growth of 42% in newborns after the start of the new population policy. Thus the demand for educational services is present and growing.

The Shandong Government spent 206,300,000,000 Yuan on Education in 2015. There is also huge government support and focus on education, as Shandong government spent 206,300,000,000 yuan on education alone in 2015. In addition a new ruling has been passed recently as of 1st September 2017 where the Chinese government will provide heavily subsidised land for companies who set up schools along with a more attractive tax structure, meaning to say the cost of building schools will be drastically reduced. In many areas where the government is trying to reduce bank lending, it actually encourages the banks to provide more business lending for the development of schools and the education sector in general.

Shandong Culture of Education - The Hometown of Famous Scholar Confucius and Mencius Much of Shandong’s focus on education also has to do with its heritage. With credits to China Daily: “Shandong is the birthplace and the center of Chinese civilization and Shandong culture has felt the influence of Chinese civilization since remote antiquity. It was the hometown of many outstanding ideologists, scientists, politicians, militarists, litterateurs and artists. Among them, the most famous are Confucius, a great thinker, educator, and founder of the Confucian school of thought, and another representative figure of Confucius’ School, Mencius.”

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Shandong Culture of Education - The Hometown of Famous Scholar Confucius and Mencius Confucius, Master of Culture

Source: China Daily

Confucius (551 - 479 BC) was a great thinker, educator, and the founder of the Confucian school of thought. He was born in the state of Lu during the Spring and Autumn Period. Benevolence is a key component of his ideas. Confucius put determined effort towards study and research, and soon became erudite. He set the example of private education and enrolled a lot of students no matter whether they were rich or poor. It is said he had 3000 disciples and 72 of them were excellent ones. Confucius earned the reputation of being the forerunner in the spreading of knowledge. He visited a lot of countries, and compiled ancient documents in his later years. He committed himself to education, collection of famous ancient works such as The Book of History and The Book of Songs, and adaptations of The Spring and Autumn Annals. His students made a record of his thoughts and actions in The Analects of Confucius. Through strenuous efforts by Confucius and his disciples of later generations, the Confucian School became the mainstream of Chinese culture. Its influence on the thoughts of Chinese has extended more than 2000 years. The core of the system of Confucian Thought is rule with morality. He persistently advocates the moral cultivation of life and society. The highest standard for a society governed with morality is rite, and the highest standard for a morally cultivated life is benevolence. Confucius suggests that we should first behave appropriately if we want to win trust from others, and that we should first satisfy others’ needs if we want to have our expectations fulfilled. 8


Shandong Culture of Education - The Hometown of Famous Scholar Confucius and Mencius He also offers good advice on how to deal with people around us and good philosophy, such as: "Don't do unto others what you don't want others to do unto you". Confucius proposes the harmonization between human being and nature and the idea that "man is an integral part of nature”. He explains why we should be benevolent to other people and friendly with everything on the earth. Confucius insists that a country should be governed with morality so as to create a comfortable life for its people and to educate them. Only in that case would economy and culture reach long term development. Confucius believes that the most developed civilization is one that gives birth to people with sound characters, creates a harmonious social environment and believes "the whole world is one community". With his eminent contribution and wide influence, Confucius is respected as the greatest educator in Chinese history.

Mencius Mencius (about 372 - 289 BC), also known as Meng Ke, is a great thinker, educator, and politician in the Warring States Period. He was born in Zou, today's Zouxian County in Shandong Province. Mencius accounts the major thoughts and political activities of Confucius in his life time. Mencius is believed to be the heir of the Confucian School and thus honoured as Yasheng, meaning second to Confucius, the Master of Culture.” With a strong historical culture of education, Shandong parents and students place on themselves immense pressure to sign up for extra classes and put in hours of study. Furthermore in China the geography and province division also influences one's admission to a university. A student's gaokao grade isn't viewed only in relation to the grades of student throughout China in that year, but also in relation to students of one's own province.

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Shandong Culture of Education - The Hometown of Famous Scholar Confucius and Mencius

Source: The Famous People

For example: When a Beijing university is recruiting students from different provinces, although the students who is ranked 5th in Shandong province probably has a higher grade than the student ranked 2nd in Xinjiang province (Shandong grades are normally quite high, unlike Xinjiang), the latter has an advantage for obtaining a higher spot within his or her province. On the one hand this system has a socialist flavour, promoting students from regions which might have poor education services, while on the other it leaves highachieving students from quality-education provinces extremely frustrated. The regional discrimination can be proved by the disparities between ratios of a province's enrolment of students to the total number of candidate students of the province. Typically, acceptance rate for students from, Shandong are about 3 times lesser than students from Beijing and Shanghai while its population is 4 and 5 times more respectively. Therefore one can tell why education services have especially strong demand in Shandong province.

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Introduction of Lion City Education

Website: lcesg.com.cn

Lion City Education is a premium school with a Singapore background when it first opened doors in China in 2014, but has successfully integrated into the lives of the Chinese and is now the number 1 educational training school in the city of Zaozhuang of Shandong province. The founder, who had been living in Singapore, adopted the strengths of the Singapore brand name to create a premium school and also use the best of class managements systems and practices, while making it relevant and suited for the Chinese syllables and examinations. Accorded the highest status among its competitors, it is the only school in the city licenced to hire foreigners. Its position and status is such that they have been invited by several government schools to teach at the schools themselves and even to design some of the curriculum and train the government teachers. This could only be achieved due to the quality of the school hand in hand with strong support from the local government. Thus, many investors have also approached Lion City Education.

Certificate of Administration (Left) License to Hire Foreigners (Right)

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Introduction of Lion City Education

• In 2014 it started its headquarters, occupying a 5 story building that is the biggest in the city. • In 2015 due to its profitability, it opened up a 2nd 2-story school. • In 2016 it expanded further by obtaining a franchise from a Beijing school with a long history and set up its 3rd 2-story school to learn its best methods and practices. After integrating the best of the franchise into its own curriculum and management systems, it opened up another 2-story school. All the schools are also strategically located near to existing public schools so there is synergy in the form of partnerships with government schools and also easy access for students to simply cross the road after lessons to start their additional learning in Lion City Education centres.

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Lion City Education Achievements The true achievement of schools is not how much it earns but how many top students it produces and this is especially important in China where reputation and branding matters. Success begets success, and each successful performing student is a live testimonial of the school’s learning systems. At the same time, Lion City Education also focuses on the qualitative aspect and all-rounded character development of students. Its philosophy when translated to English is “For students to learn in an enjoyable and scientifically proven way, to be able to have the keys to communicate with the world”.

Happy Students and Top Achievers Who Scored Full Marks in Government Examinations:

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Lion City Education Achievements

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Lion City Education Strengths It is the most comprehensive and number 1 school in Zaozhuang city. It teaches children from the ages of 3 to 18, with at least 98% retention rate as students move up each level of studies within Lion City Education. They are also different from competitors as they also make use of software and platforms to aid the learning process, to manage the teachers’ time and work, and to also receive regular feedback and acknowledgement from the students’ parents on the lessons and assignments. In short they leverage on technology, and have standardised all processes scientifically to ensure the quality of teaching is consistent and goal driven. In additional to the core educational training, Lion City Education also provides day care and extra tutoring services during holidays. They also offer overseas trips to countries such as Singapore and USA.

Lion City Education teaches children aged 3 to 18, and hold a 98% retention rate.

Educational Immersion Trip in Singapore, USA

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Lion City Education Strengths Educational Immersion Trip in Singapore, USA

They have built up a professional workforce with strict requirements. Only experienced hires can join the school and they have to undergo 3 to 6 months of training. The school also has a healthy culture and strong opportunities where the top management works with each individual to map out his career goals. They have a total of 83 staff (both in teaching and management) and over 300 external teachers working with them. In terms of financials and valuation, Lion City Education has a healthy balance sheet as there is zero debt. The profits margins are consistently around 20% for the past 4 years. Valuation done using Discounted Cash Flow Analysis shows that a single $1 invested would have gained 623% of profits. This is excluding the value of the brand as well as other qualitative factors. In the future expansions we expect returns to significantly increase due to greater economies of scale, new policy of heavily subsidised land provided by the government (for education), greater student demand as well as possibly leveraging on other schools by offering franchises to scale significantly.

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Lion City Education Strengths Lastly they have invested in a professional business model. In terms of the growth strategy, they acquire students through positioning themselves nearby large public schools, even to the extent of working with public schools. They then leverage on this reputation to work with even more schools to raise their name further. Secondly they have a strong retention strategy as they cover the education syllables from the age of 3 to 18 years old, ensuring no student falls out of the path.

An annually compounding rate of students which is limited only by classroom capacity. Basically they are compounding the rate of students each year, constrained only by physical space of classrooms as they also maintain a strict quality by capping the number of students in a class to 20-30, unlike public schools which can go all the way up to 70. The last point of their successful business model is the effort they put into branding and publicity: • They hold many philanthropy activities as a school with the students. • They also have many media interviews that showcase their capabilities. • Due to the numerous charitable activities and cooperation with public schools they now have strong blessings and close relationships with the local government.

Media Coverage

Philanthropy

Positive Government Relationship 17


Lion City Education Media Coverage Parent-Child Marathon Race on China’s National Day On China’s 66th National Day, Lion City Education held a marathon to love the nation and one’s health, to promote the importance of a healthy living lifestyle for the children, as well as emphasise on the need to have a healthy and happy relationship with their parents. Engaged To Teach English At A Local Government School The government school principal, Mr Han Yu Ming, mentioned that they selected Lion City Education out of other schools due to their professionalism and capabilities to help teach English at the government school. Lion City Education Charity Event For Unprivileged Rural Area Kids

Lion City Education held a charity event where they fetched children from far flung rural areas to the school to experience the lessons, go on a study trip and cover their future school fees at the schools. They also encouraged its existing young students to bring gifts for the unprivileged rural kids to teach the value of sharing and empathy for others.

Lion City Education’s Overseas Study Immersion Trip Programmes

Lion City Education’s overseas study immersion trip programmes won praises from both parents and students alike. One student mentioned that such a programme opened her eyes to the world such she has become more motivated and determined to work harder in order to gain the opportunity to study overseas in future. 18


Lion City Education Media Coverage Lion City Education’s English Competition Lion City Education held an English performance hosted by a celebrity TV host. The aim is to make learning enjoyable and allow students to grow their learning potential and confidence in public performances.

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Lion City Education Team The Lion City Education Team

CEO Zhang Can

Principal Education Director Zheng Dan 10 Years of Experience

Education Director Wang Hong Ying 7 Years of Experience

Principal Pan Xing Juan 6 Years of Experience

Principal Zhang Le 10 Years of Experience

Operations Manager Cui Can Can 8 Years of Experience 20


Lion City Education Team The Lion City Education Team

Education Manager Wu Qing Qing 11 Years of Experience

Principal Liu Chao 5 Years of Experience

Education Manager Li Feng 5 Years of Experience

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Roadmap and Milestones In conducting this ICO, there is a very specific purpose as part of Lion City Education’s 5-year plan. After 4 years in the business building up a solid foundation, with a professional workforce and systems in place, it is now a golden opportune to significantly expand in the next 1 year. The external conditions also support its vision, as Shandong will be welcoming its 2nd new-born who will come of age. The Chinese government offers heavily subsidised land now for education business which will drive down barriers to entry and increase profits. The local government in Zaozhuang is also nervous with the impending early childhood education demand and for the past 10 years there has only been 1 public kindergarten, without any new ones being built, with the rest being private kindergartens. Overall there is a lot of pent up demand.

Lion City Education Current Schools And Future Expansion Plans

Figure A

• Red stars depict the current 4 schools serving about 2500 students • Black stars depict the new educational training centres to be set up in its expansion plans • Black dots depict the new kindergartens to be set up with about 1000 enrolment per kindergarten

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Roadmap and Milestones

• Blue dots represent the 5 government schools that Lion City Education is working with, teaching 13500 students

Figure B

• Red dots represent the 6 private kindergartens that it is working with, teaching about 1000 students

Figure C

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Timeline 6 Schools + 1 Kindergarten

2018

Shandong will be welcoming its 2nd new-born. The Chinese government offers cheap land now for education businesses which will drive down costs. Build 2 schools and 1 kindergarten.

9 Schools + 2 Kindergartens

2019

Start of its 2nd 5-year plan. Build 3 schools and 1 kindergarten. The goal is to be the largest education business by 2019.


2020

Build 1 kindergarten and further expansion of its schools. Adopt online education model and/or franchise model as means to expand.


2021

2022 to 2024

Expand the number of schools to 40 by 2021. It will be a challenge to acquire talent so focus will be on franchises complemented by systems to manage and control quality.

100 Schools + 5 Kindergartens Expand the total number of schools to 100 and kindergartens to 5 during this period and branch out to surrounding cities.

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KinderCoin KinderCoin is an ERC20 standard token based on the Ethereum technology and blockchain. It grants token holders participation in being part of the building process for schools. It is a utility token where token holders can use it to pay for courses or pledge for charitable acts by voluntarily pledging any amount to cover the school fees or provide financial aid of any student of Lion City Education. After the completion of the ICO, the token will be listed on exchanges so that is tradable and liquid. The goal of the project is to take advantage of the supportive factors for education to quickly and efficiently expand and build up. To reward supporters of this project, i.e. token holders, profits from the new schools will be distributed into a cash account. 20% of the profits in terms of cash flow or when cashed out will be for Lion City Education as remuneration and incentive for managing of the expansion project. 80% of the profits goes to token holders. In addition, regular updates and reports upon any significant changes will be given to provide guidance for the direction of the token price.

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KinderCoin A KinderCoin Example KinderCoin will be back by real assets and generate cash flow at the same time. These plus expectations will actually drive the price of KinderCoin.

80% of all profits will be placed into the cash account in fiat currency. If there is excess cash unused for the time being, the cash may also be placed in cash equivalents like short term loans or money market instruments to derive more value for token holders. When the cash account is sufficient, the funds may also be reinvested into additional schools to compound via the business. The developments of the assets will be announced periodically with the valuation. Future expectations will usually be based on the analysis of token holders and investors who will be influencing the price. However no matter what happens, the token will always have real underlying value in the form of the cash account and assets. If the price of KinderCoin drops below the actual value, there will then be an arbitrage opportunity for other investors to buy up to actually bring the price back to equilibrium. If price is higher than what the value should be due to differing opinions, one can then sell it on the exchange and buy back when it is lower again.

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Benefits & Risks KinderCoin will keep growing in value in tandem with the expansion and development of schools. We cannot be certain when, but in the future if Lion City Education opts to cash out and monetize the assets through an IPO or sale, the proceeds will go to the cash account. From there the cash will be converted to ETH and distributed to all token holders. If however, any token holder wants to realise the profits at the current value at any point in time, they can simply sell the token on the exchange as the true value will be reflected as well in the price.

Benefits for KinderCoin Investor: • • • •

Pay for educational courses at discounted rates Rare opportunity to participate in an inaccessible area Investment diversification Avenue for philanthropy and make a difference to the lives of children • Liquidity as token will be listed, without being stuck 5 to 10 years like traditional private equity funds • Does not require a huge amount to start with as with other traditional funds • Backed by real assets and experienced business that is at the top of their local industry

Risks, Including But Not Limited To: • • • •

Market risk Theft Hacking Regulatory

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Initial Coin Offerings Name: KinderCoin Symbol: KDC

Incorporation: Incorporated under Lion City Education Pte Ltd in Singapore Platform: Ethereum

Creation: KinderCoin will be created during a single token creation event and will be distributed during two phases. After both rounds of the coin offering, no subsequent tokens will be created. 4,649,000 KinderCoin will be pre-mined during the token creation event. All tokens that remain unsold after round 2 will be burned. Total Token Supply: 4,649,000 KinderCoin Hard Cap: 4,649,000 KinderCoin will be available to the public throughout both rounds of the initial coin offering. Soft Cap: 1,200,000 KinderCoin which will allow Lion City Education to start on the first steps of expansions

Accepted Contributions: ETH, USD, SGD Minimum Transaction Amount: 0.1 ETH. For USD and SGD fiat currencies, please contact us at [email protected]

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Initial Coin Offerings ROUND 1 PRE-SALE: KinderCoins will be available for purchase on December 3rd, 2017 and will continue to be credited until December 23rd, 2017 or when the pre-sale hard cap of 2,479,000 tokens is reached, whichever occurs first. Price: 1 ETH = 130 KinderCoin for first 871,000 tokens Extra 30% bonus provided for the early investors who support the project as reward as Lion City Education would then be able to go ahead to start expansion. Price: 1 ETH = 120 KinderCoin for next 1,608,000 tokens Extra 20% bonus

ROUND 2 ICO: KinderCoin will be available for purchase on December 24th, 2017 and will continue to be credited until January 20th, 2017 or when the ICO hard cap of 4,649,000 distributed KinderCoin is reached, or when Lion City Education decides to stop, whichever occurs first. Price: 1 ETH = 100 KinderCoin for last 2,170,000 tokens

Restrictions: Singapore residents and US persons will not be allowed to purchase KinderCoin. There will be a check box on the website for buyers to declare before proceeding to the contribution page

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Crowdfunding Distribution

Project Funds: We aim to make this as fair an ICO as possible, similar or even better than other Venture Capital funds or Private Equity funds out there. Thus we will allocate most of it to the development of the schools Management Fee: This is for Lion City Education to manage the funds based on a 2% a year management fee over the next 5 years. This will subsequently be reduced to 1% of invested assets after year 5. Marketing and Operations: This is targeted to be at 10% as we aim to keep this low for the benefit of token holders.

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Lion City Education Kindercoin CRYPTOCURRENCY POWERING EDUCATION