Virscend Education Company Limited (Stock Code: 1565) announced that its wholly-owned subsidiary, Tibet Huatai, has entered into a renewed Lease Agreement with Chengdu Tianren Hotel Co., Ltd. (Tianren Hotel) to continue using two floors (2,300 square meters) of Chengdu Tianren Hotel as office premises. The new term extends for three years from 1 December 2025 to 30 November 2028, with a monthly rental rate of RMB120 per square meter. According to IFRS 16, the lease will be recognized as a right-of-use asset of approximately RMB8,985,757.61.

Tibet Huatai also signed an Integrated Management Services Agreement with Tianren Hotel, under which Tianren Hotel will continue providing property management, maintenance, cleaning, security, car parking, and catering services for three years from 1 December 2025 to 30 November 2028. The property management fees are RMB26 per square meter per month while catering services are charged at RMB2,800 per meal, reflecting an estimated 80 individuals per meal. Both the lease and service arrangements involve connected persons, given that Tianren Hotel is owned by executive Director and Controlling Shareholder Mr. Yan at approximately 99.1%.

Under the Listing Rules, the lease is treated as an acquisition of a right-of-use asset, and both agreements constitute connected transactions. As the applicable percentage ratios are above 0.1% but below 5%, these transactions are subject to reporting and announcement requirements but exempt from independent shareholders’ approval. The Company’s board of directors has deemed the terms of the agreements to be fair and reasonable based on arm’s length negotiations.