China Education Group Holdings Limited announced reference is made to the announcements the Company dated 22 March 2019 and 28 March 2019 in relation to the issue of HKD 2,355,000,000 2.0 per cent. convertible bonds due 2024 and dated 14 February 2022 and 16 February 2022 in relation to the repurchase of the Convertible Bonds. Pursuant to the terms and conditions of the Convertible Bonds and being notified by the trustee, the Company will, at the option of the holders of the Convertible Bonds redeem HKD 1,544,000,000 principal amount of the Convertible Bonds on 28 March 2022 at face value of its principal amount.

The relevant redemption will be funded by internal resources of the Group. After redemption, the relevant Convertible Bonds will be cancelled and cannot be converted into the shares of the Company. HKD 692,000,000 principal amount of the Convertible Bonds repurchased and cancelled by the Company previously and the Convertible Bonds to be redeemed on the Redemption Date in aggregate represent approximately 94.95% of the aggregate principal amount of the Convertible Bonds originally issued.

Upon redemption on the Redemption Date, the remaining HKD 119,000,000 principal amount of the Convertible Bonds, representing approximately 5.05% of the aggregate principal amount of the Convertible Bonds originally issued, will be due in March 2024.