{"url_path":"/sec/lxeh/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL INFORMATION**","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":899,"has_tables":true,"body_markdown":"**ITEM 8. FINANCIAL INFORMATION**\n\n** **\n\n**A. Consolidated Statements and Other Financial\nInformation**\n\n \n\nPlease refer to Item 18.\n\n \n\n**Legal Proceedings**\n\n \n\nFrom time to time, we are\nsubject to legal proceedings, investigations and claims during the course of our and the VIEs’ business. We have not been involved in any major legal proceedings during the fiscal year of 2025, which, in the opinion of our management, has or is likely to\nhave a material adverse effect on our and the VIEs’ business, financial condition or results of operations.\n\n \n\nWe have been involved in the following legal proceedings in previous financial years:\n\n \n\nOn October 12, 2023, Langfang\nSchool received a court notice from the People’s Court of Anci District, Langfang City, Hebei Province that Hebei Technical College\nof Petroleum Profession (河北石油职业技术学院) (“Hebei Petroleum College”),\nas the plaintiff, had filed a complaint in relation to its contractual dispute against Langfang School and Beijing S.K.’s affiliates.\nOn December 18, 2023, Langfang School received the first-instance judgment, pursuant to which the court ruled that Langfang School should,\nwithin ten days after the effectiveness of the judgment, pay the plaintiff overdue rental expenses of RMB25,235,000 for the period from\nJanuary 1, 2022 to August 31, 2023, and continue to pay rent for the period from September 1, 2023 to the date when the lease is terminated.\nLangfang School filed for a second-instance lawsuit on December 19, 2023. A trial for cross-examination was held on January 31, 2024.\nOn April 19, 2024, Langfang School received the final judgment that it would not need to pay rental expenses for the period from January\n1, 2022 to August 31, 2023 or the period after September 1, 2023, but should vacate the premises in relation to the dispute by July 30,\n2024. To continue using the premises and facilities, Langfang School entered into a cooperation agreement with Hebei Petroleum College\non July 31, 2024, in which it was agreed that Langfang School could continue to use the facilities of the southern campus of Hebei Petroleum\nCollege for operating vocational education, for six years from July 31, 2024 to July 30, 2030, and Langfang School would pay Hebei Petroleum\nCollege RMB11,000,000 each year, subject to certain fees adjustment arrangements.\n\n \n\nOn December 18, 2023, Lishui\nMengxiang, as applicant, filed an arbitration application against Beijing S.K. and its affiliates, as respondents in relation to the\nbreach of the investment cooperation agreement entered into between the two parties on July 27, 2021 and a series of investment supplemental\nagreement entered into between the two parties during 2022 and 2023. The main arbitration claim was to request the respondents to pay\nthe contracted amount of RMB72.41 million and liquidated damages of RMB20 million. On April 3, 2025, the Beijing Arbitration Commission\nrendered a final award granting the applicant’s main arbitration claim. As of the date of this annual report, Lishui Mengxiang\nhas applied for enforcement of the arbitration award but has not yet received the aforementioned amount.\n\n \n\n**Dividend Policy**\n\n \n\nOur board of directors has\ndiscretion on whether to distribute dividends, subject to certain requirements of Cayman Islands law. In addition, our shareholders may\nby ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our board of directors. In either case,\nall dividends are subject to certain restrictions under Cayman Islands law, namely that our company may only pay dividends out of profits\nor share premium, and provided always that in no circumstances may a dividend be paid if this would result in our company being unable\nto pay its debts as they fall due in the ordinary course of business. Even if we decide to pay dividends, the form, frequency and amount\nwill depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions\nand other factors that the board of directors may deem relevant.\n\n \n\nWe do not have any present\nplan to pay any cash dividends on our ordinary shares in the foreseeable future. We currently intend to retain most, if not all, of our\navailable funds and any future earnings to operate and expand our and the VIEs’ business.\n\n \n\nWe are a holding company\nincorporated in the Cayman Islands. We may rely on dividends from our subsidiaries in China for our cash requirements, including any\npayment of dividends to our shareholders. PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us. See\n“*Item 4. Information on the Company—B. Business Overview—Regulation—PRC Laws and Regulations Relating to Foreign\nExchange*” and “*Item 4. Information on the Company—B. Business Overview—Regulation—Regulations on\nTaxation in the PRC—Income Tax in relation to Dividend Distribution.*”\n\n \n\nIf we pay any dividends\non our ordinary shares, we will pay those dividends which are payable in respect of the ordinary shares underlying our ADSs to the depositary,\nas the registered holder of such ordinary shares, and the depositary then will pay such amounts to our ADS holders in proportion to ordinary\nshares underlying the ADSs held by such ADS holders, subject to the terms of the deposit agreement, including the fees and expenses payable\nthereunder. Cash dividends on our ordinary shares, if any, will be paid in U.S. dollars. See “*Item 12. Description of Securities\nother than Equity Securities—D. American Depositary Shares.*”\n\n \n\n**B. Significant Changes**\n\n \n\nWe have not experienced\nany significant changes since the date of our audited consolidated financial statements included in this annual report on Form 20-F.\n\n \n\n151"}