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

Key Highlights for Investors

• On-Market Share Purchase: The Trustee of Scholar Education Group has recently acquired 314,000 shares on the open market, specifically for the Share Award Scheme.
• Purpose: Shares are to be held in trust for future distribution to Selected Participants under the Scheme Rules and Trust Deed, as part of employee incentivization and retention strategies.
• Purchase Details:
  • Total Shares Purchased: 314,000 shares
  • Percentage of Issued Shares: Approximately 0.047% of the total issued shares
  • Average Purchase Price: HK\$1.65 per share
  • Total Consideration (excluding transaction costs): HK\$518,000
  • Post-Purchase Trustee Holdings: 9,916,000 shares, or about 1.47% of the total issued shares
• Board’s View: The Board believes the current share price significantly undervalues the Company’s underlying assets and business prospects.
• Future Plans: The Company intends to continue monitoring market conditions and may instruct further share purchases for the Scheme when deemed appropriate.
• Scheme Administration: The Board will exercise discretion in determining the number of awarded shares and set vesting conditions for Selected Participants.

Potential Impact on Shareholders and Share Price

• Price Sensitivity: The Board’s public assertion that the share price is undervalued may influence investor sentiment and could be seen as a positive signal for share price appreciation.
• Market Activity: Share buybacks or purchases for award schemes often reduce the free float and can provide support to the share price.
• Employee Incentives: The Share Award Scheme aligns management and employee interests with those of shareholders, potentially improving operational performance and long-term value creation.
• Active Monitoring: Continued monitoring and potential further share purchases indicate active capital management and confidence in the business outlook.

Board and Management

As of the announcement date, the Board consists of:

• 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

The announcement is authorized and signed by Chairman Chen Qiyuan.

Conclusion

The Scholar Education Group’s active share purchase under its Share Award Scheme is a signal of confidence from the Board in both the Company’s current valuation and its future prospects. The buyback may provide support to the share price, enhance shareholder value, and improve alignment between employees and investors. Shareholders should monitor further announcements as the Board may continue to instruct more share purchases depending on market conditions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors are advised to conduct their own research and consult professional advisors before making investment decisions.

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