Scholar Education Group forms AI robot joint venture

Scholar Education Group, through its subsidiary Shenzhen Fengye, announced the formation of a joint venture company with Shenzhen Huaxia Junyong on November 4, 2025. The venture, with a registered capital of RMB385.0 million, will focus on the research and development of educational artificial intelligence robots.

Shenzhen Fengye will contribute RMB115.5 million (30%), and Shenzhen Huaxia Junyong will contribute RMB269.5 million (70%), with capital contributions due by March 31, 2026. This initiative is expected to accelerate the group's entry into the AI robotics industry and enhance its educational technology offerings.

The transaction is classified as discloseable under Listing Rules, requiring reporting and announcement. Financing for the group's investment will primarily come from proceeds allocated to artificial intelligence projects from a new share subscription, as disclosed on October 15, 2025.

Additionally, Scholar Education Group's monthly return for October 2025 shows an increase of 110,000,000 ordinary shares due to a placing/subscription on October 24, 2025, bringing the total issued shares to 674,869,050. The share repurchase program resulted in 1,088,000 shares redeemed or repurchased but not yet cancelled. The company's total authorised/registered share capital remains $1,000,000.