An unknown buyer entered into non-legal binding cooperation framework agreement to acquire DreamEast Jiashan from DreamEast Group Limited (SEHK:593) for approximately CNY 210 million on June 3, 2021. The consideration of CNY 78.7 million in cash. The purchaser will then provide shareholder loan to DreamEast Jiashan for the latter to repay the amounts due to other subsidiaries of the company in the amount of approximately CNY 131.4 million as at May 31, 2021.

The company will therefore receive approximately CNY 210 million in total. As at December 31, 2020, total assets and total liabilities of DreamEast Jiashan were CNY 708.7 million and CNY 587.4 million, respectively. Upon completion of the Disposal, DreamEast Jiashan will cease to be a subsidiary of the company.

A formal sale and purchase agreement is expected to be entered between the company and the buyer in the third quarter of 2021 and Disposal of 51% equity interest in DreamEast Jiashan is expected to be cmmpleted in Fourth quarter of 2022.