NEW HIGHER EDU (02001) announced that on May 29, 2026, the seller, Beijing Da'ai Shuren Education Consulting Co., Ltd. (a consolidated affiliated entity of the company), the buyer, Guangxi Yinghua Haian Education Investment Co., Ltd., and the target company, Songming Xinju Enterprise Management Co., Ltd., entered into a sale and purchase agreement. Under the agreement, the seller has agreed to sell, and the buyer has agreed to purchase, the sale shares for a consideration of RMB 360 million. Following completion, the target company, which is the sole shareholder of the Guangxi school operator, will be 100% owned by the buyer and will cease to be a subsidiary of the company. Furthermore, the relevant structured contracts have been terminated and are no longer in effect. Consequently, the financial performance of the Guangxi schools will no longer be consolidated into the group's financial statements.

The target company, established under Chinese law on October 27, 2016, is the sole shareholder of the Guangxi school operator and is primarily engaged in private higher education business. The Guangxi schools comprise the following two institutions. Guangxi Yinghua International Vocational College, established under Chinese law on January 20, 2006, is primarily engaged in regular higher vocational education. As of the date of this announcement, its registered capital is RMB 33 million. Guangxi Yinghua International Vocational College Affiliated High School, established under Chinese law on April 10, 2006, is primarily engaged in regular senior high school education. As of the date of this announcement, its registered capital is RMB 5 million.

This asset disposal represents a prudent decision by the group to adapt to policy guidance and proactively focus on high-quality development. Moving forward, the group will continue to increase resource investment, concentrate efforts on deepening the development of its existing institutions, promote the continuous enhancement of educational levels and core competitiveness, and effectively ensure the long-term improvement of teaching quality and social value. As the net proceeds from the disposal will be used as working capital for the group, this move is expected to strengthen the group's financial position. The directors (including the independent non-executive directors) consider the terms and conditions of the sale and purchase agreement, including the consideration, to be fair and reasonable, entered into on normal commercial terms, and in the overall interests of the company and its shareholders.