Hope Education Group sells key assets for RMB540m to boost liquidity

Hope Education Group announced a major transaction involving the disposal of its entire equity interest in Weixian Giant Education Technology Co., Ltd. and Hebei Wuhu Property Development Co., Ltd.

The group is also selling its entire operational rights and interest in Xingtai Vocational College of Applied Technology for a total consideration of RMB540 million. This transaction aims to strengthen the Group’s financial resources and manage existing debts.

The purchasers, Laike Holdings Co., Ltd. and Nanfeng Zhiwoyi (Beijing) Education Technology Co., Ltd., along with their guarantor Liu Wenxian, are independent third parties. The disposal is expected to generate an unaudited gain of approximately RMB34.3 million for the group. Proceeds will be used to fulfill debt repayment obligations, including current debt and interest-bearing bank and other borrowings of RMB2,129.1 million as of February 28, 2025.

The transaction constitutes a major transaction under Chapter 14 of the Listing Rules, requiring shareholder approval at an extraordinary general meeting (EGM) to be held on Friday, November 14, 2025. The directors recommend shareholders vote in favor, emphasizing the deal's alignment with the Group's strategy for sustainable development.