Scholar Education Group Announces On-Market Share Purchase Under Share Award Scheme

Key Highlights

• Scholar Education Group has announced a voluntary update regarding its ongoing Share Award Scheme.
• On 23 April 2026, the Trustee executed a purchase of 300,000 shares on the market, to be held in trust for the benefit of selected participants under the Scheme.
• The average purchase price was HK\$1.71 per share, representing a total consideration (excluding transaction costs) of approximately HK\$513,000.
• Following the transaction, the total shares held by the Trustee reached 9,402,000 shares, equivalent to 1.40% of the Company’s issued shares.
• The purchased shares represent 0.045% of the total shares in issue as at the date of this announcement.

Strategic Rationale and Potential Impact for Shareholders

The Board of Scholar Education Group believes that the current share price significantly undervalues the Company’s underlying value. This assessment has driven the Board to act decisively, viewing the current market conditions as a favorable opportunity to accumulate shares for future awards under the Share Award Scheme. The Company expresses confidence in its business outlook and prospects, which may be reassuring for investors seeking long-term growth.

The active purchase of shares by the Trustee signals strong internal confidence and a proactive approach to capital allocation. This could be interpreted as a positive indicator of management’s belief in the Company’s future performance, potentially impacting the share price in the short to medium term.

The Board will continue to monitor market conditions and the trading price of its shares, and will instruct the Trustee to purchase shares for the Share Award Scheme as deemed appropriate. Furthermore, the Board retains the absolute discretion to determine the number of awarded shares and their vesting conditions for selected participants. This flexibility allows the Company to reward key personnel and align their interests with those of shareholders.

Shareholder Considerations

• Price Sensitivity: The announcement communicates management’s view that shares are undervalued, which may serve as a catalyst for market participants to re-evaluate the stock.
• Future Share Purchases: The Company may continue to buy back shares, potentially supporting the share price and reducing supply in the market.
• Alignment of Interests: Ongoing awards under the Scheme could improve employee motivation and retention, which is generally positive for long-term value creation.
• Board Composition: The Board includes four executive directors and three independent non-executive directors, ensuring balanced governance and oversight of the Scheme.

Board Members

• Executive Directors: Mr. Chen Qiyuan (Chairman), Mr. Qi Mingzhi (Chief Executive Officer), Ms. Li Ailing, Ms. Leng Xinlan
• Independent Non-Executive Directors: Mr. Yang Xuezhi, Ms. Yim Ka Man, Prof. Zhang Wenjun

Conclusion

The Company’s proactive share purchase and clear indication of undervaluation may have a meaningful impact on investor sentiment and the share price. The Board’s confidence in the business outlook, coupled with its commitment to closely monitor market conditions and award shares strategically, suggests continued support for the stock in the near future.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should conduct their own research and consult with a professional financial advisor before making any investment decisions.

View SCHOLAR EDU Historical chart here