China's Science and Education Industry (01756): Guangzhou Huali Science and Technology Vocational College plans to spend about 37.7074 million yuan to acquire properties near Yunfu campus

According to Zhitong Finance App, China's science and education industry (01756) announced that on August 21, 2026 (after the transaction period), the buyer Guangzhou Huali Science and Technology Vocational College (an entity related to the company's comprehensive accounting) signed a housing transfer contract with the seller Guangdong Hualiyuan Technology Co., Ltd., and the buyer plans to buy such properties from the seller at a cost of about RMB 377.074 million. The properties are intended to be used as the buyer's student dormitories.

These properties include two 6-storey houses used as student dormitories at Guangdong Huali City University, No. 55 Yunxiang Avenue, Yunfu City, Guangdong Province, China. The total construction area is 10,500.54 square meters (including House No. 1 with a total floor area of 5,250.27 square meters and House 2 with a total floor area of 5,250.27 square meters). The properties are close to the buyer's Yunfu campus and are intended to be used as the buyer's student dormitory. House No. 2 is currently subject to a lease agreement between the seller and the Group. The monthly rent is RMB 126,006.48 from March 1, 2025 to February 29, 2028.

The directors believe that the acquisition will enable the Group to expand and enhance student accommodation around its existing campus. Providing suitable student accommodation is an important supporting service to support the Group's education business, helping to enhance student convenience, campus management and overall student experience. Given the geographical location of these properties, the directors believe that these properties are ideal for integrating with the Group's existing school operations and will create operational synergy with the Group's existing education services.

The Board also expects demand for student accommodation to remain stable and likely to grow as the Group continues to develop its education business. The acquisition will enable the Group to acquire long-term student accommodation, reduce reliance on external accommodation arrangements, and provide greater flexibility in managing student accommodation resources. Furthermore, in view of the expected increase in boarding fees charged by the Group in the future, the directors believe that the acquisition could expand the Group's revenue base and make a positive contribution to the Group's long-term business development.