LEADER EDU (01449): Heilongjiang Business College has entered into a financing leasing arrangement with Chengtai Finance (Chengtai).

LEADER EDU (01449) announced that on January 23, 2025, Heilongjiang Business School and Chengtai Financing entered into a sale and leaseback agreement (Chengtai), ownership transfer agreement (Chengtai), and service agreement (Chengtai), with a sale price of RMB 50 million and a total leasing payment of RMB 54.895 million. Through the arrangement of financing lease (Chengtai), the Group can obtain financial resources for the construction of the Group's campus and to meet its general operating capital needs, while the Group's operations will not be affected by the sale and leaseback of the leasing assets (Chengtai) as these assets will be immediately leased back to the Group. According to the financing lease arrangement (Chengtai), the ownership or usage rights of the assets are not transferred to Chengtai Financing. In accordance with International Financial Reporting Standards, the proposed transactions under the financing lease arrangement (Chengtai) do not constitute an asset sale, therefore no income or loss needs to be recognized in the Group's income statement. Upon expiration of the leasing period, the Group will pay a nominal repurchase amount to transfer the leasing assets (Chengtai) back to the Group. Therefore, in reality and in terms of accounting treatment, entering into the financing lease arrangement (Chengtai) is essentially similar to borrowing a secured loan.