Tan Nguyen's questions to Bright Scholar Education Holdings (BEDU) leadership • Q1 2025
Question
Tan Nguyen inquired about the drivers behind recent cash flow movements, the company's rationale for choosing share buybacks over dividends amidst low stock liquidity, and the long-term strategic vision for Bright Scholar's positioning and target markets.
Answer
CFO Cindy Zhang explained that the primary use of operating cash was for recruitment commissions, following the advance collection of tuition fees in the previous quarter. Executive Ruolei Niu stated that the board opted for a share buyback to signal confidence and support the stock's value, deferring dividends until profits are more sustained. Niu outlined a 'dual-engine' strategy focusing on expanding the international schools business globally and scaling the student recruitment platform into new developing markets.