According to the latest announcement, Edvantage Group Holdings Limited (stock code: 0382) has disclosed continuing connected transactions under a Hotel Operation Contract dated 31 October 2025. This contract is made between its wholly owned subsidiary (Huashang Hotel) and Sun City Hotel, which is indirectly owned by two major shareholders of Edvantage Group, making it a connected person under Chapter 14A of the Listing Rules.
Under the contract, effective from 1 November 2025 to 31 August 2028, Sun City Hotel will contract out the operation of specified premises in Guangzhou, including hotel facilities, lobby, conference rooms, guest rooms, dormitories, and canteen, to Huashang Hotel. Huashang Hotel will manage all daily operations and bear both operational benefits and risks: it retains any profits generated and assumes all losses, costs, and taxes. Pursuant to the agreement, Huashang Hotel will pay an annual contracting fee of RMB3 million and a security deposit of RMB0.6 million.
The announcement indicates that the Hotel Operation Contract will be aggregated with two previous agreements (the Hotel Management Contract and the Hotel Usage Agreement) entered within a 12-month period. As certain percentage ratios exceed 0.1% but remain below 5%, the transactions qualify for exemption from circular and shareholders’ approval requirements, subject only to reporting, annual review, and announcement obligations.
The announcement further states the rationale for proceeding with this arrangement. Huashang Hotel had previously managed the same premises to provide students—particularly those enrolled in Huashang Hospitality Management School—with practical, real-life hospitality operation experience. This approach aligns with the Group’s strategy of integrating industry experience into educational programs. The premises are considered an appropriate venue, given their central location and existing familiarity among students and faculty.
Edvantage Group reports that the prior arrangement meaningfully contributed to the hands-on training of its hospitality students, who achieved recognition in various competitions and recruitment events. The new contract allows continued industry-education integration while reducing the Group’s formalities associated with independently obtaining all required hotel qualifications.
Edvantage Group emphasizes that the contract’s terms, including profit and loss arrangements and fees, reflect commercial considerations and the ongoing strategy to enhance educational outcomes. The Directors consider the arrangement fair and reasonable, in the ordinary course of business, and beneficial to Edvantage Group’s goals of practical training for students in hospitality management.