The reserves of Hong Kong’s largest international school group have more than tripled to HK$3.75 billion (US$480.8 million) in over a decade, even as it taps different income sources to offset shrinking government subsidies, the South China Morning Post has found by reviewing the organisation’s annual reports.

The report showed that its net assets, which matched its reserves, reached a record HK$3.75 billion, surpassing Lingnan University’s HK$2.65 billion and the Education University of Hong Kong’s HK$2.04 billion for their 2024-25 financial year ending last June.

The SCMP review of the ESF’s financial reports found that its reserves were more than three times the HK$1.18 billion recorded in 2012-13 and had grown continually for more than 10 years.

The reserves came from the group’s operational surplus, which comprised tuition fee income and capital funds from nomination rights.

In a reply to the SCMP, an ESF spokesman said: “We have to accumulate financial reserves that will allow us to renew, refresh and rebuild our schools when they require it. The overwhelming majority of our reserves are ring-fenced for this purpose.”