Scienjoy Holding Corporation has acquired a 29.9% stake in Hong Kong-listed Leader Education Limited for HK$102.69 million, the company said in an announcement on September 2.
The investment is passive and does not grant Scienjoy control of Leader Education. Scienjoy's independent director will sit on Leader Education's board as part of the transaction, which the company disclosed as a related-party arrangement under Hong Kong listing rules.
Scienjoy, a Chinese EdTech provider, has expanded its portfolio beyond direct instruction into the higher education services market with this stake purchase. Leader Education operates in Chinese higher education and professional services, serving students seeking postsecondary credentials and career advancement. The two companies operate in overlapping segments of the Chinese education market but at different points in the student journey.
The 29.9% threshold sits just below the 30% mandatory general offer requirement under Hong Kong Takeovers and Mergers Code, allowing Scienjoy to acquire a substantial minority position without triggering an obligation to make a full takeover bid to all shareholders. This structure is common in Hong Kong-listed stocks when investors seek meaningful board representation without full control.
Scienjoy's entry into Leader Education comes as Chinese education stocks have faced regulatory headwinds since 2021, when Beijing imposed sweeping restrictions on tutoring companies and tightened oversight of the sector. EdTech companies have since pivoted toward higher education, professional training and international markets. Leader Education's Hong Kong listing provides Scienjoy with exposure to a diversified education services platform in a more regulated offshore jurisdiction.
The announcement did not specify whether Scienjoy intends to increase its stake above the 29.9% level or holds the position as a long-term investment. The independent director appointment gives Scienjoy board-level visibility into Leader Education's operations and strategy without the governance obligations that would come with a controlling stake.
Scienjoy paid approximately HK$3.43 per share for its stake based on the disclosed transaction value. The deal represents Scienjoy's first publicly disclosed significant minority investment in a Hong Kong-listed education company since the sector's regulatory reset in 2021. If Scienjoy increases its holding above 30% within the next 12 months, Hong Kong regulators would require the company to announce an intention regarding a general offer.
