- China New Higher Education Group’s subsidiary Yun Ai Group enters a five-year cooperation with Zhongyuan Trust, injecting up to RMB430 million into a joint trust plan.
- Partnership aims to enhance capital management, financial flexibility, and risk control, leveraging Zhongyuan Trust’s asset management and consultancy expertise.
- Transaction classified as discloseable under Hong Kong Listing Rules, supporting the group’s long-term growth strategy without requiring shareholder approval.
China New Higher Education Group Limited has announced that its subsidiary, Yun Ai Group, has entered into a five-year cooperation agreement with Zhongyuan Trust, marking a strategic move to strengthen the group’s capital management and financial flexibility as it advances its long-term development plans. Under the agreement, Yun Ai Group will inject up to RMB430 million into a jointly established trust plan, with Zhongyuan Trust serving as both trustee and manager.
According to the company, Zhongyuan Trust will provide a range of professional services to Yun Ai Group, including asset management, financial consultancy, and risk management consultancy. By partnering with an established trust institution, the group aims to tap into Zhongyuan Trust’s investment expertise, market insights, and information resources. The arrangement is designed to support the group’s strategic planning and business development while enhancing its overall financial risk control framework.
A spokesperson for China New Higher Education Group said the cooperation reflects the company’s proactive approach to optimizing capital utilization and strengthening financial governance. “Through this trust plan, we hope to better leverage professional asset management capabilities to support our operational needs and long-term strategy, while maintaining prudent risk management”, the spokesperson said. The company emphasized that the agreement is aligned with its broader objective of ensuring sustainable and stable growth across its education portfolio.
From a regulatory perspective, the transaction has been classified as a discloseable transaction under Hong Kong Listing Rules. As a result, it is subject to reporting and announcement requirements but does not require approval from shareholders. The company noted that this classification reflects the scale of the investment relative to the group’s overall financial position, and that all relevant compliance obligations have been met.
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Market observers see the move as part of a broader trend among education groups to adopt more sophisticated financial structures to support expansion and operational resilience. By working with Zhongyuan Trust, Yun Ai Group is expected to benefit from professional oversight and diversified asset management solutions, potentially improving capital efficiency in a challenging and competitive operating environment.
China New Higher Education Group, which is listed on the Hong Kong Stock Exchange under stock code 2001, is a private higher education operator focused on vocational and applied-oriented tertiary education in mainland China. The group operates through multiple subsidiaries, including Yun Ai Group, and has been seeking ways to enhance both financial and operational flexibility as it navigates evolving regulatory and market conditions.
In the equity market, the company continues to attract positive attention from analysts. The most recent analyst assessment on China New Higher Education Group maintains a 'Buy' rating, with a price target of HK$1.50, reflecting confidence in the company’s long-term prospects despite short-term market fluctuations. The stock has recently experienced some downward movement, but analysts note that strategic initiatives such as the Zhongyuan Trust cooperation could support stronger fundamentals over time.
Overall, the company said the agreement underscores its commitment to disciplined capital management and prudent financial planning, reinforcing its ability to support the sustained development of its education businesses while managing risks effectively.
