[Caihua News] people's livelihood Education (01569.HK) announced that on December 21, 2021, Minsheng Education (as the borrower) entered into a loan agreement with DEG, a member of the German Bank for Reconstruction and Development (DEG) (as the lender). According to the loan agreement, DEG agreed to lend to Minsheng Education, and Minsheng Education agreed to borrow up to 28.24 million US dollars in principal from DEG, and the latest repayment date is June 15, 2028. The loan will be repaid in 11 equal installments starting from June 15, 2023, with half-yearly installments. The loan will be used for, among other things, the group's business development and day-to-day operations.

The directors believe that the company's success in obtaining long-term loan support from policy banks will help the company to further broaden its financing channels, optimize its capital structure, enhance its international reputation, and provide good financing support for the company's sustained and healthy development in the future.

Under the share retention agreement attached to the loan agreement, Mr. Li Xuechun, the chairman of the board of directors, the executive director and the ultimate controlling shareholder of the company and Minsheng Group shall bear specific responsibilities for performance during the outstanding period of the loan, Mr. Li Xuechun shall directly maintain not less than 51% of the legal and de facto interest in Minsheng Group; and Minsheng Group shall directly maintain not less than 51% of the legal and de facto interest in the holding company.

On the date of the announcement, Mr. Li Xuechun, chairman of the board of directors, executive director and ultimate controlling shareholder, indirectly held 64.43% of the company by holding 90% of Minsheng Group and 71.59% of Minsheng Group.