{"url_path":"/sec/lxeh/10-k/2026/item-6","section_key":"item-6","section_title":"Item 6 DIRECTORS, SENIOR MANAGEMENT AND","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-12","source_url":"https://www.sec.gov/Archives/edgar/data/1814067/0001213900-26-055168-index.html","accession_number":"0001213900-26-055168","cik":"0001814067","ticker":"LXEH","issuer_name":"Lixiang Education Holding Co. Ltd.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1814067/0001213900-26-055168-index.html","primary_entity_key":"0001814067","primary_entity_name":"Lixiang Education Holding Co. Ltd."},"word_count":4559,"has_tables":true,"body_markdown":"**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND\nEMPLOYEES**\n\n** **\n\n**A. Directors and Senior Management**\n\n \n\nThe following table sets\nforth information regarding our directors and executive officers as of the date of the annual report.\n\n \n\n**Name**\n \n**Age**\n \n**Position with the Company**\n\n**Executive Directors\nand Officers:**\n \n \n \n \n\nFen Ye\n \n54\n \nDirector;\nChairlady\n\nBiao Wei\n \n54\n \nDirector;\nChief Executive Officer\n\nZhaoxiang Wei\n \n30\n \nDirector\n\nZhifu Yang\n \n44\n \nChief\nFinancial Officer\n\n**Non-Executive Directors:**\n \n \n \n \n\nTeck Yong Heng\n \n52\n \nIndependent\nDirector\n\nYan Kit Lee\n \n55\n \nIndependent\nDirector\n\nGuoliang Chen\n \n58\n \nIndependent\nDirector\n\n** **\n\n**Executive Officers**\n\n \n\n**Ms. Fen Ye**,\naged 54, is our founder and has served as our chairlady and director since September 2018. Ms. Fen Ye founded the Company in\nAugust 2001 by establishing Lishui Mengxiang. Since 2003, Ms. Fen Ye has served as a director, chairlady and legal representative\nof Lianwai School. Ms. Fen Ye served as a director of Liandu Foreign Language School Kindergarten from 2014 to 2018.\n\n \n\n**Mr. Biao Wei**,\naged 54, is the spouse of Ms. Fen Ye and has served as our director since September 2018. Mr. Biao Wei joined us in August\n2001 as the general manager of Lishui Mengxiang. Mr. Wei has served as a director of Lianwai School since September 2002 and a director\nof Lishui Yuanmeng Training Company Limited since 2014. Mr. Biao Wei served as a director of Liandu Foreign Language School Kindergarten\nfrom 2014 to 2018. Mr. Biao Wei attended a professional program in fashion design at the Zhejiang Institute of Silk Textiles in\nthe PRC from September 1988 to November 1991.\n\n \n\n**Mr. Zhaoxiang Wei**,\naged 30, is the son of Ms. Fen Ye and Mr. Biao Wei and has served as our director since December 2022 and the assistant general manager\nof Hangzhou Youxi since June 2023. Mr. Zhaoxiang Wei served as the assistant general manager of North Cedar Academy from February 2022\nto July 2023. He served as the office assistant of Lianwai School from February 2021 to January 2022. He received his bachelor’s\ndegree in language and literature from University of California, Los Angeles in March 2022.\n\n \n\n141\n\n \n\n \n\n**Mr. Zhifu Yang**,\naged 44, has over 15 years of work experience in financial accounting and financial management. Since October 2021, Mr. Yang has been\nacting as the chief financial officer in Beijing Pengxiang Tianxia Education Technology Co., Ltd. From October 2019 to October 2021,\nMr. Yang worked in Zhi Jin Education Consulting Co., Ltd as the chief financial officer. Before entering into the vocational education\nindustry, Mr. Yang has worked in a state-owned enterprise of China for about nine years, and a property management company for about\nthree years, conducting financial accounting and financial management work. Mr. Yang received his bachelor’s degree in financial\naccounting from Renmin University of China.\n\n \n\n**Non-executive Directors**\n\n \n\n**Mr. Teck Yong\nHeng**, aged 52, has served as our independent director since September 30, 2020. Mr. Heng currently serves as the managing\npartner of C2Partners, or C-Squared Partners, a China focused consumer sector private equity fund. Before founding C-Squared\nPartners, he was the managing director in QianHai Fund of Funds (“Qianhai FoF”), where he led and recommended public and\nprivate equity direct investments in addition to commitments into private equity/venture capital funds. Prior to QianHai FoF, he worked\nat Temasek Holdings, Pavilion Capital, Arthur Andersen, Singapore Power and Cambridge Associates. Mr. Heng graduated from Nanyang\nTechnological University with a bachelor’s degree in Accountancy (Honors). He is also an alumnus of Harvard Business School and\nattended its General Management Program. He is a Chartered Financial Analyst (CFA), Chartered Accountant (CA), Financial Risk Manager\n(FRM) and a member of Singapore Institute of Directors.\n\n \n\n**Mr. Yan Kit Lee**,\naged 55, has served as our independent director since September 30, 2020. Meanwhile, Mr. Lee has been an independent non-executive director\n(also a member of audit committee and nomination committee, and the chairman of remuneration committee) of Landrich Holding Limited (HKEx\nStock Code: 2132) (a contractor company having a long history of undertaking construction works in Hong Kong) since October 2020. Moreover,\nMr. Lee has been the director of Hoyan Group International Limited, Skyyer MediaX Limited and Bling TravelX Group Limited since September\n2016, October 2020 and May 2024 respectively. Mr. Lee is now the chairman of Hong Kong Young Chief Officers’ Association, a director\nof Hong Kong Greater China SME Alliance Association, a honorary chairman of Hong Kong Private Detective Association, a honorary consultant\nof Guangdong-Hong Kong-Macao Greater Bay Area Youth Society, a vice chairman of Communications and Public Affairs Committee of Scout\nAssociation of Hong Kong, the deputy captain of Kwai Shing West Estate Care Team of Kwai Tsing District, and a honorary prime minister\nof Hong Kong Rehabilitation Power. Mr. Lee was successfully elected as the 5th “Outstanding Chinese Youth of the World”\nfrom Outstanding Chinese Culture Association in June 2020. Mr. Lee has over 20 years of rich experience in the banking and financial\nindustry. Mr. Lee worked in Sin Hua Bank Limited (currently known as Bank of China (Hong Kong) Limited) from March 1996 to April 2000\nwith his last position held as an officer. He then worked as an assistant manager in Wing Hang Bank Limited (currently known as OCBC\nWing Hang Bank Limited) from April 2000 to January 2001. Mr. Lee also worked in DBS Bank (Hong Kong) Limited from January 2001 to June\n2004 with his last position held as vice president. He also acted as a senior business financial manager and team manager of Standard\nChartered Bank (HK) Limited from June 2004 to September 2006. From September 2006 to July 2016, he held various positions at Dah Sing\nBank Limited including team head, regional head, general manager and project manager. Mr. Lee was an independent non-executive director\nof C-Link Squared Limited, a company listed on the Main Board of the Stock Exchange (stock code: 1463) from March 2020 to March 2023.\nMr. Lee also has abundant experience on the aspect of business management and marketing strategy. Mr. Lee was appointed as the president\nof SBG Holdings Limited and the chief marketing officer of HKST Group Holdings Limited from September 2016 to September 2017 and September\n2016 to May 2018, respectively. He was the chief operating officer of National Arts Group Holdings Limited from May 2020 to January 2022.\nMr. Lee obtained his Bachelor of Arts Degree (with a major in economics and a minor in psychology) from the University of Manitoba in\nMay 1993 in Canada and a certificate of business management from Ryerson Polytechnic University in June 1996 in Canada. Mr. Lee also\nobtained a Master of Science Degree in financial management from the University of London in the United Kingdom in December 2000.\n\n \n\n**Mr. Guoliang\nChen**, aged 58, has served as our director since December 2022 and has served as our independent director since April 2026. He\nhas served as the director and principal of Lianwai School since September 2013. Mr. Chen has over 30 years of experience in the\neducation industry and joined us in September 2013. From September 2012 to August 2013, he served as the principal of Liandu District\nChuzhou High School. From September 2005 to August 2012, he served as the principal of Liandu District Meishan High School. From September\n2002 to August 2005, he was the vice principal of Tianning High School. Prior to this, he worked as the director of educational and student\naffairs in Dayang Road School from September 1994 to August 2002. From February 1988 to August 1994, he was the division head of language\neducation and research in Laozhu School for Ethnic Minorities (formerly known as Yeling High School). Mr. Chen obtained his bachelor’s\ndegree from Zhejiang Education University in the PRC in June 1994. He graduated from Lishui Teachers Training College in the PRC in January\n1988. He completed his master’s degree in education in Zhejiang Normal University in the PRC in September 2000. Mr. Chen was\nqualified as a senior high school teacher in November 2002. In September 2016, he was awarded the 26th Spring Silkworm Award by the Zhejiang\nProvince Education Foundation. In August 2015, Mr. Chen was awarded 2014 Excellent Principal by Lishui Liandu District Education\nBureau. In September 2012, he was awarded the first-class award on education quality management by Liandu District Education Bureau and\nTop 10 Education Role Model by the People’s Government of Lishui Liandu District. In January 2010, Mr. Chen was awarded 2008-2009\nLishui Education and Research Outstanding Individual. In August 2009, September 2011, September 2012 and August 2015, Mr. Chen was\nawarded the title of Liandu Excellent Educator. In September 2004, he was awarded as the 2003 Liandu District Excellent Teacher 2003\nby Liandu District Education Bureau.\n\n \n\n**Board Diversity Disclosure**\n\n \n\nThe following information\nwas provided by our directors on a voluntary basis.\n\n \n\n142\n\n \n\n \n\n**Board Diversity Matrix (As of date of this\nannual report)**\n\n \n\nCountry of Principal Executive Offices \nChina\n\nForeign Private Issuer \nYes\n\nDisclosure Prohibited Under Home Country Law \nNo\n\nTotal Number of Directors \n6\n\n \n\n  \nFemale  \nMale  \nNon-Binary  \nDid not \ndisclose \n\n**Part I:** Gender Identity \n   \n   \n  \n\nDirectors \n 1  \n 5  \n         0  \n         0 \n\n**Part II:** Demographic Background \n          \n    \n    \n   \n\nUnderrepresented Individual in Home Country \n    \n           \n 0  \n   \n\nLGBTQ+ \n    \n    \n 0  \n   \n\nDid Not Disclose Demographic Background \n    \n    \n 0  \n   \n\n \n\n**B. Compensation**\n\n \n\nFor the fiscal year ended\nDecember 31, 2025, we paid an aggregate of approximately US$0.15 million in cash to our executive officers and directors. We\nhave not set aside or accrued any amount to provide pension, retirement or other similar benefits to our executive officers and directors.\nOur PRC subsidiaries are required by law to make contributions equal to certain percentages of each employee’s salary for his or\nher pension insurance, medical insurance, unemployment insurance and other statutory benefits and a housing provident fund. For incentive\nshare grants to our officers and directors, see “*—Share Incentive Plan*.”\n\n \n\n**Share Incentive Plan**\n\n \n\n*2020 Equity Incentive Plan*\n\n \n\nOur 2020 Equity Incentive\nPlan was adopted on September 8, 2020 to attract and retain the best available personnel for positions of substantial responsibility,\nprovide additional incentive to employees, directors and consultants and promote the success of our business. The equity incentive plan\nprovides for the grant of an option, restricted shares, restricted share units and local awards.\n\n \n\n*Authorized Shares*\nThe maximum number of ordinary shares may be subject to awards pursuant to the 2020 Equity Incentive Plan is 5,000,000 initially. The\naggregate number of ordinary shares available for issuance under the 2020 Equity Incentive Plan will be increased (i) on January 1\nof the fiscal year immediately following the fiscal year in which an initial public offering of our shares, or a Qualified IPO, is consummated,\nby an amount equal to 0.5% of the total number of ordinary shares issued and outstanding on December 31 of the immediately preceding\nfiscal year, and (ii) on January 1 of each fiscal year during the period beginning with the second fiscal year following the\nfiscal year in which a Qualified IPO is consummated, by an amount equal to 1% of the total number of ordinary shares issued and outstanding\non December 31 of the immediately preceding fiscal year.\n\n \n\n*Administration*Our\nboard of directors or a committee of the board or officers to which the board delegates the authority administers the 2020 Equity Incentive\nPlan. The administrator will determine the participants to receive awards, the type and number of awards to be granted to each participant\nand the provisions and terms and conditions of each award. In the event that any dividend or other distribution (whether in the form\nof cash, shares, other securities or other property), recapitalization, share division, share consolidation, reorganization or any change\nin the corporate structure of the Company affecting the shares occurs, the administrator will make adjustment with respect to the number\nand class of shares that may be delivered under the 2020 Equity Incentive Plan and/or the number, price and class of shares covered by\noutstanding awards, in order to prevent diminution or enlargement of the benefits intended to be made available under the 2020 Equity\nIncentive Plan.\n\n \n\n*Awards under the Equity Incentive Plan*\n\n \n\n*Share Options* Share\noptions may be granted under the 2020 Equity Incentive Plan. The administrator determines the exercise price for each option award, which\nis stated in the award agreement and should in no case be lower than the par value of our ordinary shares. One-half of the\nshares subject to an option will vest on each of the first and second annual anniversaries of the vesting commencement date, unless otherwise\nprovided in the award agreement.\n\n \n\n143\n\n \n\n \n\n*Restricted Shares*\nA restricted share award agreement will specify restrictions on the duration of the restricted period and the number of shares granted.\nRestricted shares may not be sold, transferred or pledged until the end of the restricted period and may be subject to forfeiture upon\na termination of employment or service with us. Unless otherwise provided in the award agreement, the holder of restricted shares will\nbe entitled to receive all dividends and other distributions paid with respect to the ordinary shares, subject to the same restrictions\non transferability and forfeitability as the underlying shares of restricted shares. One-half of the restricted shares will\nvest on each of the first and second annual anniversaries of the vesting commencement date, unless otherwise provided in the award agreement.\n\n \n\n*Restricted Share Units*\nAwards of restricted share units may be granted by the administrator. At the time of granting restricted share units, the administrator\nmay impose conditions that must be satisfied, such as continued employment or service or attainment of corporate performance goals, and\nmay place restrictions on the grant and/or vesting of the restricted share units. A restricted share unit award agreement will specify\napplicable vesting criteria, the number of restricted share units granted and the terms and conditions on time and form of payment. Each\nrestricted share unit, upon fulfillment of applicable conditions, represents a right to receive an amount equal to the fair market value\nof one ordinary share.\n\n \n\n*Local Awards* The\nadministrator may cause any of our PRC subsidiaries or VIEs to grant local cash-settled awards in lieu of any other award under the 2020\nEquity Incentive Plan, which such local awards shall be paid wholly by such PRC subsidiaries or VIEs. Each local award shall be linked\nto the fair market value of one ordinary share.\n\n \n\n*Change in Control*\nIn the event of a change in control, the administrator may provide for acceleration of awards, purchase of awards from holders or replacement\nof awards.\n\n \n\n*Term*Unless terminated\nearlier, the 2020 Equity Incentive Plan will continue in effect for a term of ten years from the date of its adoption.\n\n \n\n*Amendment and Termination*\nSubject to applicable shareholders’ approval and certain exceptions, the board of directors may at any time amend or terminate\nthe 2020 Equity Incentive Plan. The 2020 Equity Incentive Plan will automatically terminate in 2030, unless terminated sooner. The termination\nof the 2020 Equity Incentive Plan will not affect the administrator’s ability to exercise the powers granted to it with respect\nto awards granted under the plan prior to the date of such termination.\n\n \n\n*Granted Options and Restricted\nShare Units* For the fiscal year ended December 31, 2025, no options or restricted share units under the 2020 Equity Incentive\nPlan had been granted.\n\n \n\n**C. Board Practices**\n\n \n\nOur board of directors consists\nof six directors, including four executive directors and two non-executive directors. We also promote gender diversity among our board\nmembers. The powers and duties of our directors include convening general meetings and reporting our board’s work at our shareholders’\nmeetings, declaring dividends and distributions, appointing officers and determining the term of office and responsibilities of the officers,\nas well as exercising other powers, functions and duties as conferred by our articles of association. Our directors may at their discretion\nexercise all the powers of our company to borrow money, and to mortgage or charge its undertaking, property and assets (present and future)\nand uncalled capital or any part thereof, to issue debentures, debenture stock, bonds and other securities, whether outright or as collateral\nsecurity for any debt, liability or obligation of our Company or of any third party.\n\n \n\nNone of our non-executive\ndirectors has a service contract with us that provides for benefits upon termination of service.\n\n \n\n**Committees of the Board of Directors**\n\n \n\nWe have established an audit\ncommittee, a compensation committee and a nominating and corporate governance committee under the board of directors. We have adopted\na charter for each of the three committees. Each committee’s members and functions are described below.\n\n \n\n144\n\n \n\n \n\n**Audit Committee.**Our\naudit committee consists of three directors, namely Mr. Teck Yong Heng, Mr. Yan Kit Lee and Mr. Guoliang Chen. The audit committee is\nchaired by Mr. Teck Yong Heng. Each of Mr. Teck Yong Heng, Mr. Yan Kit Lee and Mr. Guoliang Chen satisfies the “independence”\nrequirements under Rule 5605(c)(2) of the Listing Rules of the Nasdaq Stock Market and meets the independence standards under Rule 10A-3\nunder the Exchange Act. Prior to April 2026, Mr. Guoliang Chen was a non-voting member of our audit committee and only had observer status\non our audit committee. We have determined that Mr. Teck Yong Heng qualifies as an “audit committee financial expert.” The\naudit committee oversees our accounting and financial reporting processes and the audits of the financial statements of our company.\nThe audit committee is responsible for, among other things:\n\n \n\n●selecting\nand appointing auditors and pre-approving all auditing and non-auditing services\npermitted to be performed by such independent auditors;\n\n \n\n●reviewing\nwith the independent auditors any audit problems or difficulties and management’s response;\n\n \n\n●reviewing\nand approving all proposed related party transactions;\n\n \n\n●discussing\nthe annual audited financial statements with management and the independent auditors;\n\n \n\n●reviewing\nthe adequacy and effectiveness of our accounting and internal control policies and procedures\nand any steps taken to monitor and control major financial risk exposures;\n\n \n\n●meeting\nseparately and periodically with management and our independent auditors;\n\n \n\n●reporting\nregularly to the board of directors;\n\n \n\n●monitoring\ncompliance with our code of business conduct and ethics, including reviewing the adequacy\nand effectiveness of our procedures to ensure proper compliance; and\n\n \n\n●other\nmatters that are specifically assigned to our audit committee by our board of directors from\ntime to time;\n\n \n\n**Compensation Committee.**Our compensation committee consists of three members, namely Mr. Teck Yong Heng, Mr. Yan Kit Lee and Mr. Guoliang Chen.\nThe compensation committee is chaired by Mr. Yan Kit Lee. Each of those three directors satisfies the “independence”\nrequirements of Rule 5605(c)(2) of the Listing Rules of the Nasdaq Stock Market. Our compensation committee assists the board in\nreviewing and approving the compensation structure of our directors and executive officers, including all forms of compensation to be\nprovided to our directors and executive officers. Members of the compensation committee are not prohibited from direct involvement in\ndetermining their own compensation. Our chief executive officer may not be present at any committee meeting during which his compensation\nis deliberated. The compensation committee is responsible for, among other things:\n\n \n\n●reviewing\nand making recommendations to the board of directors with respect to directors’ compensation;\n\n \n\n●reviewing\nand approving to the board with respect to the compensation for our chief executive officer\nand other executive officers;\n\n \n\n●reviewing\nperiodically and approving any incentive compensation or equity plans, programs or other\nsimilar arrangements;\n\n \n\n●approving\nguidelines for senior management salary, incentive, stock option, benefit and other compensation\nlevels; and\n\n \n\n●producing\nan annual report on executive compensation in accordance with applicable rules and regulations.\n\n \n\n145\n\n \n\n \n\n**Nominating and Corporate\nGovernance Committee.**Our nominating and corporate governance committee consists of three directors, namely Mr. Teck Yong\nHeng, Mr. Yan Kit Lee and Mr. Guoliang Chen. The nominating and corporate governance committee is chaired by Mr. Teck Yong\nHeng. Each of those three directors satisfies the “independence” requirements of Rule 5605(c)(2) of the Listing Rules of\nthe Nasdaq Stock Market. The nominating and corporate governance committee assists the board of directors in selecting individuals qualified\nto become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee\nis responsible for, among other things:\n\n \n\n●identifying\nand recommending nominees for election by the shareholders or appointment by the board of\ndirectors;\n\n \n\n●reviewing\nannually with the board of directors its current composition with regards to characteristics\nsuch as independence, age, skills, experience, diversity and availability of service to us;\n\n \n\n●advising\nthe board of directors on the frequency and structure of board meetings and monitoring the\nfunctioning of the committees of the board; and\n\n \n\n●advising\nthe board periodically with regards to significant developments in the law and practice of\ncorporate governance as well as monitoring our compliance with applicable laws and regulations,\nand making recommendations to the board on all matters of corporate governance and on any\nremedial action to be taken.\n\n \n\n**Duties of Directors**\n\n \n\nUnder Cayman Islands law,\nour directors owe fiduciary duties to our company, including a duty of loyalty, a duty to act honestly and a duty to act in what they\nconsider in good faith to be in our best interests. Our directors must also exercise their powers only for a proper purpose. Our directors\nalso have a duty to exercise the skill they actually possess and such care and diligence that a reasonably prudent person would exercise\nin comparable circumstances. In fulfilling their duty of care to us, our directors must ensure compliance with our memorandum and articles\nof association, as amended and restated from time to time, and the class rights vested thereunder in the holders of the shares. Our company\nhas the right to seek damages if a duty owed by our directors is breached. A shareholder may in certain limited exceptional circumstances\nhave the right to seek damages in our name if a duty owed by the directors is breached.\n\n \n\nOur board of directors has\nall the powers necessary for managing, and for directing and supervising, our business affairs. The functions and powers of our board\nof directors include, among others:\n\n \n\n●convening\nshareholders’ annual and extraordinary general meetings and reporting its work to shareholders\nat such meetings;\n\n \n\n●declaring\ndividends and distributions;\n\n \n\n●appointing\nofficers and determining the term of office and responsibilities of the officers;\n\n \n\n●exercising\nthe borrowing powers of our company and mortgaging the property of our company; and\n\n \n\n●approving\nthe transfer of shares in our company, including the registration of such shares in our register\nof members.\n\n \n\n**Terms of Directors and Officers**\n\n \n\nOur directors may be elected\nby an ordinary resolution of our shareholders, or by the affirmative vote of a simple majority of the remaining directors present and\nvoting at a board meeting. Our directors are not subject to a term of office and hold office until they are removed from office by ordinary\nresolution of the shareholders. In accordance with our memorandum and articles of association, a director will cease to be a director\nif, among other things, the director (i) becomes bankrupt or makes any arrangement or composition with his creditors, (ii) dies\nor is found by our company to be or becomes of unsound mind, (iii) resigns his office by notice in writing to the company, (iv) without\nspecial leave of absence from our board, is absent from three consecutive board meetings and our directors resolve that his office be\nvacated, (v) is removed from office pursuant to any other provision of our memorandum and articles of association, as amended and\nrestated from time to time. Our officers are elected by and serve at the discretion of the board of directors.\n\n \n\n146\n\n \n\n \n\n**Employment Agreements and Confidentiality\nAgreements**\n\n \n\nWe have entered into employment\nagreements and confidentiality agreements with each of our executive officers. Under these agreements, we are entitled to terminate an\nexecutive officer’s employment for cause at any time for certain acts of the officer, such as being convicted of any criminal conduct,\nany act of gross or willful misconduct or any serious, willful, grossly negligent or persistent breach of any employment agreement provision.\nWe may also terminate an executive officer’s employment by giving three-month’s prior written notice without cause. An executive\nofficer may terminate his or her employment at any time by giving three-month’s prior written notice. In connection with the employment\nagreement, each executive officer will enter into an intellectual property ownership and confidentiality agreement and agreed to hold\nall information, know-how and records in any way connected with the products or services of our company, in strict confidence\nperpetually. Each executive officer also agree that we shall own all the intellectual property developed by such executive officer during\nhis or her employment.\n\n \n\nWe may enter into indemnification\nagreements with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive\nofficers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a\ndirector or officer of our company.\n\n \n\n**D. Employees**\n\n \n\nWe and the VIEs had 197,\n192 and 187 full-time employees as of December 31, 2023, 2024 and 2025, respectively. The decrease in the numbers of the full-time\nemployees was primarily due to the change of scope of the VIEs. See “*Item 4. Information on the Company—A. History and\nDevelopment of the Company.*” None of the employees in Lishui International School is represented by a labor union. We and the\nVIEs have not experienced any work stoppages, and consider our relations with the employees and the labor union to be good. The following\ntable sets forth the number of our full-time employees categorized by function as of December 31, 2025:\n\n \n\nFunction \nNumber of\nEmployees \n\nExecutive Directors and senior management \n 7 \n\nTeachers \n 92 \n\nCounselors \n 3 \n\nAdministrative staff \n 43 \n\nAccounting and finance staff \n 14 \n\nSupporting staff \n 28 \n\nTotal \n 187 \n\n \n\nWe invest resources in the\nrecruitment of employees in support of our and the VIEs’ business operations. We and the VIEs have established comprehensive training\nprograms, including training programs for newly hired teachers and continuing education courses for teachers and on-the-job-training,\nto enhance performance and service quality.\n\n \n\nAs required by PRC Laws\nand regulations, we and the VIEs participate in various employee social security plans for our PRC employees that are administered by\nmunicipal and provincial governments, including housing, pension, medical insurance, unemployment insurance, work-related injury insurance,\nmaternity insurance. We and the VIEs are required under PRC law to contribute to employee benefit plans at specified percentages of the\nsalaries, bonuses and certain allowances of our employees up to a maximum amount specified by the local government from time to time.\n\n \n\nWe and the VIEs maintain\nvarious insurance policies against certain risks and unexpected events, such as school liability insurance, student personal accident\ninsurance and property insurance for vehicles. We and the VIEs also provide social security insurance including pension insurance, unemployment\ninsurance, work related injury insurance and medical insurance for our PRC employees. We and the VIEs consider our insurance coverage\nto be generally in line with companies of similar industry and size in the PRC. See “*Item 3. Key Information—D. Risk Factors—Risks\nRelating to Our Business and Industry—We have limited insurance coverage.*” for further details of risks associated with\nour insurance coverage.\n\n \n\nWe and the VIEs enter into\nstandard labor contracts with our employees. We may also enter into standard confidentiality and non-compete agreements with the executive\nofficers. See *“—C. Board Practices—Employment Agreements and Confidentiality Agreements*.”\n\n \n\n**E. Share Ownership**\n\n \n\nPlease refer to “Item\n7. Major Shareholders and Related Party Transactions—A. Major Shareholders” and “—B. Compensation—Share\nIncentive Plan.”\n\n \n\n**F. Disclosure of a registrant’s action\nto recover erroneously awarded compensation**\n\n \n\nNot applicable.\n\n \n\n147"}