China Xinhua Education reported modest top-line growth but lower profitability for the six months ended 30 June 2026.

Financial Performance • Revenue edged up 0.60 % year on year to RMB 364.81 million, driven mainly by higher average tuition fees. • Cost of sales jumped 36.20 % to RMB 171.33 million, largely reflecting increased teaching staff wages, pushing gross profit down 18.30 % to RMB 193.48 million. • Operating profit declined 6.69 % to RMB 249.82 million; profit before tax fell 6.45 % to RMB 244.43 million. • Net profit attributable to shareholders decreased 7.10 % to RMB 238.01 million; adjusted net profit, which strips out RMB 40.37 million of forex gains and RMB 0.67 million of share-based expenses, dropped 17.90 % to RMB 198.31 million. • EBITDA margin compressed to 54.0 % from 65.3 % a year earlier, reflecting cost pressures.

Cost & Expense Dynamics • Administrative expenses fell 41.10 % to RMB 19.52 million after personnel restructuring. • Selling and distribution expenses decreased 14.30 % to RMB 0.63 million. • Finance costs declined 15.80 % to RMB 5.40 million following reduced borrowings and lower interest rates.

Cash & Balance Sheet • Total cash, bank balances and long-term deposits stood at RMB 903.46 million, down from RMB 1.13 billion at FY-end 2025, reflecting lower contract liabilities and funding support for campus projects. • Net current assets rose 66.70 % to RMB 575.31 million. • Gearing ratio improved to 13.8 % from 21.1 % at end-2025, as liabilities fell faster than assets. • Capital expenditures fell to RMB 21.30 million (1H 2025: RMB 49.20 million).

Operational Metrics • Full-time student enrolment for the 2025/26 academic year was 43,221, up 0.48 % year on year. • The group added four national-level first-class undergraduate programmes and fourteen at the provincial level during the period.

Strategic Updates • Management targets “Double Excellence” application-oriented university development under China’s new “15th Five-Year Plan” for education. • Priority areas include New Engineering, New Medical, and New Liberal Arts disciplines, deeper industry-education integration, faculty recruitment, digital transformation (AI-enabled smart campuses), and expanded international cooperation.

Capital & Dividend • No interim dividend was declared. • Outstanding share options fell to 114.30 million after 3.00 million options lapsed; no new grants or exercises occurred in the period.

Audit & Governance • Rongcheng (Hong Kong) CPA Limited replaced KPMG as external auditor following shareholder approval in June 2026. • The audit committee and new auditor reviewed the interim results; no qualifications were reported.

Outlook Management plans to pursue master’s programme approvals, continue campus investment, and sustain high graduate employment rates while managing cost pressures.