Hope Education Group takes steps to strengthen finances, improve liquidity

Hope Education Group, also known as XJ International Holdings Co., Ltd., has taken steps to address the going concern disclaimer from its auditors. The company initiated an early redemption of $271,100,000 zero coupon guaranteed convertible bonds due 2026, offering $610 for every $1,000 principal amount of outstanding bonds. Valid electronic consent instructions were received from 95.94% of bondholders, with the extraordinary resolution taking effect on July 17, 2025.

Additionally, the group is on track to complete discussions regarding RM165,000,000 medium-term notes issued by its subsidiary INTI Universal Holdings Sdn Bhd, due in November 2028. The company also announced disposals to generate cash inflows, including 100% equity interests in Zhangshu City Yude Education Management Co., Ltd., Xi'an Changdian Education Management Co., Ltd., and Shanghai Pumeng Zhichuan Education Technology Co., Ltd.

From September 2024 to July 2025, approximately RMB1.165 bn of credit has been withdrawn, with RMB1,551m in loan facilities granted but not yet withdrawn. The company also implemented measures to control administrative and capital expenditures, including strict internal approval processes and scaling down new projects.