China New Higher Education – Growth and Transformation Driving a Better Outlook

China New Higher Education, or CNHE, announced on May 25, 2021 that Daai Education entered into the Guangxi Equity Transfer Agreement where Daai Education has agreed to acquire the remaining 10% equity interest of Songming Xinjju from Huzhou Shenhang for a consideration of CNY 64 million. Upon completion of this acquisition of Guangxi Schools, Songming Xinju will become 100%-owned by Daai Education, which is a subsidiary of CNHE group. We view this as positive for CNHE given that they will have full control of the schools and will be able to provide better synergy and improved operational efficiency.