Dashan Education (09986.HK) intends to acquire 60% shares of Henan Zhongzhichuang Education Information Consulting at a price of RMB 1 million

2022-06-21 0 By

Grandhui February 14 | Dashan Education (09986.HK) announced that on February 14, 2022, the transferee zhengzhou Dashan Yunxiao Technology Co., LTD. (a wholly-owned subsidiary of the company) and the transferor (Bai Yadong, Zhu Yanjun) entered into an equity transfer agreement with the target company Henan Zhongzhichuang Education Information Consulting Co., LTD.Hereby (including) the Assignee agrees to acquire from the Assignee the total equity of the Target company after the reduction of the share capital for a price of RMB 1 million.Target group is mainly engaged in providing vocational training and technical education in computer science and information technology for adults.It provides practical and technical courses such as Java programming, web development, user interface and user experience design and H5 development to enable students to learn it skills which are in increasing demand in the IT industry.It also provides online courses for relevant subjects through third-party online platforms from time to time when necessary.After just three years of operation, it has become a mature organization and a well-known it vocational training brand in Henan Province.The Chinese government has been reforming the education system and has issued the Opinions on Further Reducing the Burden of Homework and After-school training for Students in compulsory Education in order to reduce the burden of homework and after-school training for students.The policy under this opinion continues to be a challenge for the Group’s existing business.The Group has seized the opportunity to re-evaluate its existing businesses and resources, taking into account the inevitable shifts in the industry and market trends, in order to adapt to the new regulatory environment.In light of the coronavirus situation, while its existing business is being maintained through the provision of online courses, the Group is also actively exploring opportunities and re-allocating resources to expand its business to cover other types of services.After careful study and assessment, the Group plans to focus on its new business offering three main categories of services, namely (I) vocational education for senior high school students and adults;(ii) After-school personal quality courses in arts, physical education and coding for children and youth;(iii) Overseas education consultants.The group has embarked on the natural growth of its extra-curricular and overseas education consultancy business operations.As of the announcement date, the Group is at an advanced stage of preparation for its extra-curricular courses in dance, art and programming. Accordingly, the Group has (I) recruited experienced instructors and trainers to provide the extra-curricular courses;(ii) setting up teaching centres to provide new courses in conjunction with existing own education centres or in new leased premises;And (iii) to recruit students for the new courses offered.In addition, the group has set up five training centers to offer sports extracurricular courses such as basketball, which started in the last quarter of 2021.In addition, the Group has opened a centre in Zhengzhou on 19 December 2021 to provide consultancy services to students who intend to study abroad and has begun to generate income by collecting consultancy fees.Based on the track record of the Target Group, the directors believe that the acquisition and integration of the Target Group will provide synergies and scope for the Group to develop new businesses and generate new revenue growth for the Group.