Scholar Education Group Announces Key Share Purchase Under Share Award Scheme

Summary of Announcement

Scholar Education Group (Stock Code: 1769) has released a voluntary announcement detailing the latest developments in its share award scheme. This update is crucial for shareholders and investors as it involves the on-market purchase of a significant number of shares, which may impact the company’s share value and future corporate actions.

Key Points for Investors

• Share Award Scheme Activity: The company has continued its share purchase program as part of the previously announced share award scheme, intended to incentivize and reward selected participants within the organization.
• Recent Share Purchase Details:
  • Total Shares Purchased: 200,000
  • Percentage of Total Shares in Issue: Approximately 0.03%
  • Average Purchase Price Per Share: HK\$1.69
  • Total Consideration (excluding transaction costs): HK\$337,000
  • Balance of Shares Held by Trustee After Purchase: 9,602,000 Shares (1.43% of issued shares)
• Purpose of Purchase: The shares are being held on trust for selected participants, as defined by the scheme rules and trust deed. This is part of the company’s ongoing commitment to rewarding employees and stakeholders.
• Board’s View on Share Price: The Board believes the current share price significantly undervalues the company’s underlying value. This confidence in the business outlook has driven the recent purchase, positioning the company for future awards under the scheme.
• Strategic Implications: The company may continue to instruct the Trustee to purchase shares as market conditions and trading prices allow. The Board retains absolute discretion over the number and vesting conditions of shares awarded going forward.
• Board Composition:
  • Executive Directors: Mr. Chen Qiyuan (Chairman), Mr. Qi Mingzhi (CEO), Ms. Li Ailing, Ms. Leng Xinlan
  • Independent Non-Executive Directors: Mr. Yang Xuezhi, Ms. Yim Ka Man, Prof. Zhang Wenjun

Potential Price Sensitive Information

Shareholders should note:

• The Board’s assertion that the share price is undervalued is a strong indicator of management’s confidence and could signal upcoming share price appreciation.
• The ongoing purchases may reduce the free float and increase demand for shares, potentially supporting the share price.
• The company’s intention to continue monitoring the share price and make further purchases could lead to further upward pressure on the stock.
• The award scheme is likely to be used as an incentive tool, aligning interests of key employees and stakeholders with shareholders.

Conclusion

The continued purchase of shares under the award scheme is a clear indication of Scholar Education Group’s confidence in its prospects and belief in its undervalued share price. This activity, along with the possibility of further purchases, is likely to be price sensitive and could positively impact shareholder value. Investors should closely monitor further announcements regarding the share award scheme and any additional share purchases.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisors before making any investment decisions. The views expressed are based on public disclosures by Scholar Education Group and may be subject to change.

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