HK Stock Market Move | SCHOLAR EDU has risen 6%, intending to provide up to HKD 50 million to the trustee for share buyback.

SCHOLAR EDU rose by 6% to HK$2.12 as of the time of writing, with a trading volume of HK$5,130,600. In terms of news, SCHOLAR EDU announced that on January 26, 2026, the board of directors resolved to periodically provide the trustee with a total amount not exceeding HK$50 million to purchase existing shares on the market at the prevailing market price and hold the shares until they are issued under the plan. According to the announcement, the board of directors estimates that the maximum number of shares that can be purchased is approximately 25 million, representing about 3.71% of the issued share capital. The board believes that the current share price significantly undervalues the company's related value, providing a good opportunity to purchase shares for future issuance under the plan. It is worth noting that SCHOLAR EDU issued a profit warning, expecting a net loss of RMB 70-80 million for the year 2025, while the net profit for 2024 was RMB 146 million. This is mainly due to the fact that the newly opened Literacy Learning Centers are still in the early stages of operation, generating limited revenue. In addition, due to default by trading counterparts, some of the group's financial assets investments have not been redeemed upon maturity, resulting in fair value losses.