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Fan Chen

The founding supervisor of a heavily indebted independent school in Hong Kong has said she is meeting different investors and will try her best to keep it running after it failed to refund at least HK$6.2 million (US$797,380) worth of debentures to parents.
Xu Li, the founding supervisor of Han Academy in Aberdeen, said on Friday that she had held discussions with more than one investor for various sources of funding, including borrowing, donations and crowdfunding.
“We have possibilities in various ways, but pure borrowing might be more difficult,” she told the Post, adding that lenders might not have confidence in the school’s founding body, a charity with no shares or fixed assets.
Xu declined to reveal more details about the discussions with investors, adding that she looked forward to the results.
She said the school, founded in 2017 by the NGO Happy Life Education Foundation, used to receive HK$10 million in donations annually.
Lawmaker Edward Leung Hei, who has been helping some complainants, earlier said the school had told parents in a recent briefing that it was HK$100 million in debt.
The school had attributed its dire financial position to the economic strain of the Covid-19 pandemic.
He said parents had learned that HK$80 million was needed to cover debenture refunds and HK$20 million was related to rent arrears.
Police have received reports from 12 parents accusing a private school of failing to refund debentures after they withdrew their children, with the unsettled amount totalling HK$6.2 million.
The Mandatory Provident Fund Schemes Authority said on Thursday that the school had failed to pay pension contributions for 50 employees from June to August, with the amount involving about HK$250,000.
Leung said on Thursday the academy now planned to raise money from more than 100 parents, with each one donating HK$5 million, but he was concerned about the effect the financial crisis would have on the school’s ability to enrol students in the future.
However, the supervisor said she has never heard about the plan, adding that she was “shocked and speechless”.
The school, which can accommodate 300 pupils, currently enrolled more than 100 students, Xu said.
Although she declined to reveal the exact number of enrolments that could help the school make ends meet, the current number was “close to the target”, she said.
In hindsight, the academy’s business model might have been too idealistic, Xu said.
“We didn’t have business considerations,” she said, pointing to its International Baccalaureate Diploma Programme, which had only one student in each grade in the first three years.

About a dozen parents whose children had graduated from the school had formed a group to help it solve the crisis and offer consultations, the supervisor said.
“I will never fold the school. I will try my best to keep it running,” Xu said.
The Post contacted Leung for comments on Friday.
Leung said earlier that the school mainly admitted children from newly arrived families.
Some parents from mainland China, who declined to disclose their names, said they had not heard about the school’s problems.
“I won’t worry too much,” a father said. “Even if the school does shut down, Hong Kong still has many other options out there.”
A senior pupil, who has been at the school for a year and will graduate next June, said he and others in the same grade were unfazed by the crisis.
“I don’t really care. I’m graduating anyway,” he said.
A spokeswoman for the Education Bureau said it told the academy to stop charging debentures in April after it learned about its financial situation, and required it to explain its next steps.
Private and international schools have been told to submit their proposed charges under a new government arrangement and obtain the bureau’s approval, after the ombudsman accused education authorities of failing to properly supervise how they charged additional fees, including debentures.
The bureau rolled out an application and approval mechanism for collection of other charges by private schools.


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Education in Hong Kong

Hong Kong’s debt-hit Han Academy hunts for investors to keep school running

The school has attributed its dire financial position to the economic strain of the Covid-19 pandemic. Photo: Jonathan Wong

Lawmaker Edward Leung. Photo: Jonathan Wong

Hong Kong police look into claims Han Academy owes parents HK$5.8 million

Han Academy was founded in 2017 by the Happy Life Education Foundation. Photo: Jelly Tse

A student enters Han Academy in Aberdeen. Police have said 11 parents have made reports after failing to receive refunds. Photo: Jelly Tse

Hong Kong lawmakers say private schools should be required to disclose financial status

Han Academy in Aberdeen told parents in a recent briefing that it was now HK$100 million in debt. Photo: Jelly Tse

Lawmaker Edward Leung Hei (centre) has said parents only realised the school was in dire straits when it became unable to refund the debentures. Photo: Jonathan Wong

Han Academy is HK$100 million in debt and is seeking a five-year grace period from its creditors. Photo: Jelly Tse

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Hong Kong

Education

With school in a dire financial position, founding supervisor says she has held discussions with more than one investor


With school in a dire financial position, founding supervisor says she has held discussions with more than one investor.


Hong Kong economy