China Science and Education Industry (01756) has announced that its consolidated affiliated entity, Guangzhou Huali Vocational College, entered into a property transfer agreement with Guangdong Huali Garden Technology Co., Ltd. on August 21, 2026, after trading hours. The buyer intends to acquire the properties from the seller for a consideration of approximately RMB 37.7074 million.

The properties, which are slated for use as student dormitories, are located within Guangdong Huali City College at No. 55 Yunxiang Avenue, Duyang Town, Yun'an District, Yunfu City, Guangdong Province. The acquisition comprises two six-story buildings designated for student housing, with a total gross floor area of 10,500.54 square meters. This includes Building No. 1 with a gross floor area of 5,250.27 square meters and Building No. 2 with a gross floor area of 5,250.27 square meters.

The properties are situated adjacent to the buyer's Yunfu campus and are intended to serve as student dormitories. Building No. 2 is currently subject to a lease agreement between the seller and the group, with a lease term running from March 1, 2025, to February 29, 2028, at a monthly rent of RMB 126,006.48.

Where the deal fits strategically

The directors believe that this acquisition will enable the group to expand and enhance student accommodation capacity around its existing campus. Providing suitable student housing is a critical supporting service for the group's educational operations, as it improves student convenience, campus management efficiency, and the overall student experience.

Given the strategic location of these properties, the directors consider them highly suitable for integration with the group's existing school operations, creating operational synergies with current educational services. The board also anticipates that demand for student accommodation will remain stable and potentially grow as the group continues to develop its educational business.

Financial and operational impact

The acquisition will allow the group to secure long-term premises for student housing purposes, reducing dependence on external accommodation arrangements and offering greater flexibility in managing student residential resources. Furthermore, with boarding fees expected to increase in the future, the directors believe this acquisition can broaden the group's revenue base and make a positive contribution to long-term business development.