CHINA EDU GROUP (00839) is actively promoting strategic transformation in four key areas.

CHINA EDU GROUP (00839) announces that in order to seize growth opportunities and actively respond to changes in the industry dynamics, the company is advancing strategic transformation in four key areas: Optimization of undergraduate education platform: The company continues to increase investment in the construction of undergraduate education platforms, focusing on the introduction of high-level faculty, enhancing research capabilities, and modernizing the curriculum system. Some colleges are actively applying for the authorization to confer master's degrees to further enhance academic reputation and attractiveness. Adjustment of vocational education sector: In response to the changing demands in vocational education, the company is upgrading some vocational projects to higher vocational or academic-oriented programs, while optimizing curriculum design and improving operational efficiency to enhance overall competitiveness. Enhanced project execution discipline: The company strictly controls capital project investments to ensure that investment projects are efficient, have significant impact, and are delivered on time. A well-established project management process ensures project quality, budget control, and timely delivery, laying the foundation for long-term growth and academic excellence. Expansion of financial strength and financing channels: The company actively expands financing channels, seeking cost-effective funding support from international financial institutions and prioritizing the use of RMB financing to further enhance financial resilience and mitigate foreign exchange risks. The above measures will help the company achieve higher academic achievements, operational excellence, and sustainable strong financial growth. Maintaining financial stability remains the company's top priority. The company will continue to manage cash flow with a cautious approach to ensure a solid financial foundation to support debt repayment and future investments. The company is actively reviewing its capital management strategy, focusing on evaluating the relative advantages of dividend payments and share buybacks. In the current market environment and capital availability conditions, the company will prioritize debt repayment and maintaining liquidity stability to address the tightening financial environment and upcoming debt arrangements, avoiding cross-default risks and ensuring operational stability. In addition, given that past dividend payments have not effectively stabilized and reflected the company's market value, share buybacks may provide greater flexibility in capital allocation compared to dividends. Furthermore, share buybacks can effectively demonstrate the company's confidence in its intrinsic value, enhance shareholder returns, and potentially bring additional benefits to investors holding through the Stock Connect (as of April 25, 2025, according to data from the Hong Kong Stock Exchange website, these shareholders collectively hold approximately 14.79% of the company's issued shares). The company is committed to creating sustainable value for shareholders. In accordance with the established dividend policy, the Board of Directors will continue to follow a prudent and comprehensive approach when considering whether to recommend dividend payouts and determining the specific amounts, assessing the company's financial condition, strategic capital needs, and external market environment changes, including those mentioned above. This is to ensure that the company adopts a prudent and forward-looking capital allocation strategy, enhances financial resilience, and continues to support shareholders in achieving long-term returns.