Wisdom Education International (HKG:6068) said its subsidiaries extended yuan short-term loans to four independent third parties between August 2023 and April 2025, according to a Tuesday Hong Kong bourse filing.

Shares of the company gained 4% in late-afternoon Wednesday trade.

The loans made to Zhongyou, Junzhuo, Duzheng, and Jinmuli carried annual interest rates of 4% to 5% and were backed by guarantees from the borrowers' ultimate owners.

Some transactions were not disclosed in line with Hong Kong bourse rules due to internal lapses. The company said it has since tightened compliance through enhanced checks, staff training, and updated approval protocols.

Separately, the company said a special committee has completed an internal controls review tied to connected transactions, following a 2021 group restructuring and deconsolidation.

The review found the group's systems broadly sound but cited gaps in training and timely reporting. Quarterly compliance sessions, automated reminders, and stricter oversight have since been rolled out.