The Board announced that on 29 May 2023, Gingko College, a wholly-owned subsidiary of the Company, entered into the Construction Contract with the Contractor for the construction works of the Expansion of Gingko College (Nanxi Campus) at a Contract Sum of RMB 70,450,000, subject to adjustments arising from changes in the construction works or fluctuations in the published price of labour and materials. The Construction Project encompasses, among others, the construction of student dormitory and other ancillary facilities with a total gross floor area of approximately 20,715.36 square meters, which is located at No. 18, Fenghuang Dadao, Nanxi Area, Yibin City, Sichuan Province, the PRC (Z Zhong Guo Si Chuan Sheng Yi Bin Shi Nan Xi Qu Feng Huang Da Dao 18 Hao).

Pursuant to the Construction Contract, the scope of work for the Contractor in respect of the Construction Project includes all construction works and greenery projects to be carried out by the Contractor in accordance with the construction drawings agreed under the Construction Contract. The Construction Project is scheduled to commence on 30 June 2023 and complete by 30 June 2024 (subject to the commencement date as confirmed in the commencement order to be issued by the chief supervisory engineer of the current construction segment). Contract Sum: Pursuant to the Construction contract, the Contract Sum of RMB70,450,000 (equivalent to approximately HKD 77,920,000), subject to adjustment (which is not expected to be material).

is determined after arm's length negotiations between Gingko College and the Contractor with reference to, among others, the scope and complexity of the construction works, the prevailing market price for such works, the local market conditions, the materials used and the design and size of the Construction Project. The Contract Sum will be financed by the Group's internal resources and/or bank borrowings.