The board of directors of Alliance International Education Financial Holdings Limited announced that the strategic investment committee of the Company has resolved to explore the opportunity to establish a vocational school in the special economic zone named as KEK Galang Batang in Bintan of Indonesia. Indonesia is the world's fourth most populous nation with a population of about 270 million and a relatively young population compared to Western nations. It is the largest economy in Southeast Asia.

According to information from the World Bank, Indonesia's economic planning follows a 20-year development plan, spanning from 2005 to 2025. The current medium-term development plan is the last phase of the 20-year plan, and the aim is to further strengthen the economy by improving the country's human capital and competitiveness in the global market. As Indonesia's economy is recovering from the COVID-19 pandemic, more work is to be done to ensure strong and productive human capital development.

As far as the Company is aware, the Special Zone is one of the newest special economic zones in Indonesia, and it was established by government of Indonesia in 2017 with the view of developing different industries such as mineral processing, refinery and smelter processes, energy and chemical industries, materials recycling, materials and metal processing, modern logistics, shipping and other manufacturing industries. The target is to attract more than USD 9 billion of investments and create more than 20,000 jobs by 2025. As enterprises from different industries are setting up operations in the Special Zone, they will require additional manpower who have relevant skills and knowledge.

Establishing a vocational school in the Special Zone may fulfil such manpower need and, as the Company is aware, is encouraged by the government of Indonesia. The job opportunities created in the Special Zone may attract youngsters from other parts of Indonesia to receive education and training at the vocational school and then obtain employment from enterprises in the zone. Leveraging on the experience of the college (Yantai Nanshan University)'', 70% of the interest of which is owned by the Company and which provides vocational programmes of different nature, the Strategic Investment Committee believes the Company and its subsidiaries (``Group'') have the expertise to operate such a vocational school and design programmes to train up the local workforces to become skillful workers in order to meet the manpower requirements of enterprises settled in the Special Zone.