Sunlands Sells 100% Equity in Guangzhou Shangzhi Technology for RMB 126M

Sunlands announced that Wuhan Zhizhen Youxuan Online Education Technology, a subsidiary of the company, has entered into an equity transfer agreement with Shouhui Medical Technology to dispose of 100% of the equity interests in Guangzhou Shangzhi Side Technology. The transaction does not constitute a related party transaction. Pursuant to the equity transfer agreement, the total consideration for the disposal is RMB 126M, payable in installments and subject to the terms and conditions set forth in the agreement. The parties have also entered into a fund supervision agreement with Guangdong Huaxing Bank in connection with a portion of the transaction proceeds. Upon completion of the transaction, the company expects to optimize its asset base. The company believes that such transaction will not cause it to cease to be an operating company or discontinue a substantial portion of its operations or business for any reason. Completion of the transaction is subject to customary closing conditions, including payment arrangements, release of supervised funds and completion of the relevant equity transfer registration procedures with the competent market regulation authority. There can be no assurance that all closing conditions will be satisfied in a timely manner or at all.