Scholar Education Group Executes Share Purchase Under Share Award Scheme

Key Developments Investors Should Note

Scholar Education Group (Stock Code: 1769), a Cayman Islands-incorporated company listed on the Hong Kong Stock Exchange, has made a voluntary announcement regarding a significant on-market share purchase executed as part of its ongoing Share Award Scheme.

Key Points of the Announcement

• Share Purchase Details: On 22 April 2026, the Trustee, acting on behalf of the Scheme, purchased 200,000 shares of Scholar Education Group on the open market.
• Price and Consideration: The average purchase price was approximately HK\$1.72 per share, with a total consideration (excluding transaction costs) of approximately HK\$344,000.
• Shareholding Impact: The purchased shares represent about 0.03% of the total shares in issue as of the announcement date. After this purchase, the Trustee now holds 9,102,000 shares, equivalent to approximately 1.35% of the total issued shares.
• Purpose: The shares have been acquired to be held in trust for the benefit of selected participants under the Scheme, in line with the rules of the Share Award Scheme and the Trust Deed.
• Strategic Outlook: The Board explicitly states its belief that the current share price of Scholar Education Group significantly undervalues the company’s underlying value. The Board views this as a favorable opportunity to buy back shares, reflecting management’s confidence in the business outlook and future prospects.

Information for Shareholders and Price-Sensitive Insights

• Potential Price Sensitivity: The company’s share repurchase indicates that management believes the stock is undervalued, which may signal to the market that the current share price does not reflect the true value of the business. Historically, such actions can support or lift share prices, as they are often interpreted as a sign of confidence from the Board.
• Ongoing Monitoring: The company will continue to monitor market conditions and may instruct the Trustee to conduct further share purchases for the Scheme as and when appropriate.
• Future Awards: The Board will maintain discretion over the number and vesting conditions of shares awarded to selected participants under the Scheme, which could potentially affect future share supply and incentivize management and employees.

Leadership and Governance

The announcement was authorized by Mr. Chen Qiyuan, Chairman and Executive Director of Scholar Education Group. The Board includes experienced executive and independent non-executive directors, reinforcing strong governance oversight.

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

Investor Takeaway

This share repurchase under the Share Award Scheme is a notable signal of management’s confidence in Scholar Education Group’s value and future prospects. Investors should monitor further share repurchase activities and any updates regarding future share awards, as they can influence share liquidity and price performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information is based on the latest voluntary announcement by Scholar Education Group and is subject to change without notice.

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