NEW HIGHER EDU plummeted 51% in a single day. Analysts: "Using shares to pay dividends" may trigger investor concerns about the capital chain

On November 30th, Jin Shi Data reported that on November 29th, after the Hong Kong stock market opened, the stock price of NEW HIGHER EDU plummeted sharply, falling over 51%, hitting a historic low. By the close, the decline reached 51.34%, closing at HKD 0.91 per share, with a total market value dropping to HKD 1.404 billion. Analysts pointed out that the main reason for the sharp decline in NEW HIGHER EDU's stock price may be that the company plans to distribute the final dividend in the form of shares instead of cash, in order to retain cash to support business development and operational needs, avoiding an increase in the capital-to-debt ratio. Against the backdrop of rising revenue and net profit year-on-year, the "dividend in shares" operation may have triggered investor concerns about the company's cash flow, leading them to "vote with their feet." The announcement indicated that the board of directors of NEW HIGHER EDU has resolved to distribute a final dividend of RMB 0.233 per share for the fiscal year ending August 31, 2024 (compared to a final dividend of RMB 0.096 per share for the fiscal year ending August 31, 2023). It is recommended that the final dividend be distributed entirely in the form of shares