[Caihua News] Jiahong Education (01935.HK) announced that on January 12, 2022, the Company's China affiliated entity Economic and Trade College entered into these purchase agreements with Binzhou Real Estate, pursuant to which Binzhou Real Estate agreed to sell and Binzhou Economic and Trade College agreed to acquire the target property for a total consideration of RMB 119 million.

The target property targets are located at:

To the west of Bohai Road, Binzhou City, Shandong Province, China, the total construction area is about 4511.91 square meters, including 1 Shangri-La-Riverside Green City, south of Yellow River 15 Road, 3 buildings, 201-213, 1111 and 1112, 7 buildings, 105,104,109, and 15 buildings, rooms 101,104 and 109.The total construction area is about 101,104,109, with a total floor area of about 4511.91 square meters. These properties are for commercial use.

Rooms 101to 526th floor of Greentown Shopping Mall, south of Yellow River 15th Road, west of Bohai Road, Binzhou City, Shandong Province, China, with a total construction area of about 11695.93 square meters. These properties are used for commercial and office purposes.

Properties including 8 buildings with 50 parking spaces, 11 buildings with 20 parking spaces and 13 buildings with 166 parking spaces in Shangri-La-Waterfront Green City, south of the Yellow River 15th Road, west of Bohai Road, Binzhou City, Shandong Province, China. These properties are used as parking spaces.

The Group reviews its portfolio from time to time to maximize shareholder returns. According to the Group's management accounts as at 30 October 2021, the Group's cash and bank balance is approximately RMB 1.17 billion. Taking into account the Group's current financial position, business operations and the prospects of the target properties, the Group is of the view that the acquisition will enhance shareholder returns. The Group intends to hold the target property for long-term investment.