[Caihua Social News] China Chunlai (01969.HK) announced that on December 15, 2021, the balance College of Suzhou University of Science and Technology and the seller (Gaochun Branch of Nanjing Bureau of Planning and Natural Resources) entered into an asset transfer agreement, under which the balance College will purchase the land use rights of the target land from the seller to build and develop a new institution. The new school is temporarily called "Nanjing School".

The target land is located to the east of Ning High-tech Channel of higher Vocational Park and the north side of Wei er Road, and the total area of land use right is 315732.18 square meters. The land use right for the target land should be granted for a period of 50 years for educational purposes.

The consideration for the land use right of the target land under the asset transfer agreement is RMB 180 million (equivalent to approximately HK $220 million), of which RMB 54 million has been paid and the balance of RMB 126 million will be paid in full by December 31, 2021. To the best of the Group's knowledge, the consideration is equal to the market value of similar land use rights taking into account the location of the target land. The consideration will be paid by internal financial resources of the group, financial resources of the group and bank loans.

The board of directors believes that the target land located in Nanjing, Jiangsu Province can match the location of the balance College and will bring synergy benefits. The company intends to build a new university for Nanjing school on the target land, and believes that the sufficient capacity of the target land will provide a good foundation for the future development of Nanjing school.