SXN(SH:600661) Xin Lang Cai Jing·2025-09-16 14:09Core Viewpoint - The company, Angli Education, announced the sale of its wholly-owned subsidiary, Kensington Park School Limited (KPS), for £80,000 (approximately RMB 760,100) to Hong Kong KS Education Group Limited (KSE), expecting an investment gain of approximately RMB 20 million from the transaction [1][2]. Group 1: Transaction Details - The sale price of KPS was determined using the income approach, with the book value of KPS's equity as of July 31, 2025, estimated at -RMB 19.8343 million, and the assessed value at £50,000 (approximately RMB 480,000), resulting in an appraisal increment of RMB 20.3143 million and an increase rate of 102.42% [2]. - The transaction is expected to increase the company's net assets by approximately RMB 27 million [3]. Group 2: Business Context - KPS has faced operational challenges due to factors such as the global pandemic, changes in UK education policy (including a 20% VAT on private school fees starting in 2025), a decrease in international student enrollment, and declining birth rates in London, leading to significant cumulative losses [2]. - Following the "double reduction" policy, the company is focusing on strategic transformation, emphasizing quality education, vocational and foundational education, international education, and adult education, while KPS's overseas operations have low synergy with domestic business [2]. Group 3: Historical Context - The company acquired KPS through a complex judicial process, initially providing a loan of RMB 113 million to a participating fund, which was not repaid. In 2022, the company acquired 99.6% of the fund's equity through judicial auction for RMB 800,000, thus gaining full control of the fund and its core asset, KPS [3].