China Kepei Education Group's stock plummeted 5.22% during the intraday session on Thursday, following the release of its interim financial results which showed declining profitability.

The company reported a 9.9% decrease in profit attributable to shareholders to approximately RMB 384 million for the six-month period, with core net profit falling 11.3% to around RMB 385 million. This decline occurred despite a 20.2% year-on-year increase in revenue to RMB 1.10 billion, driven by growth in undergraduate student enrollment and tuition fees.

Investor sentiment turned negative as the results revealed significant margin compression, with gross profit margin narrowing to 46.1% from 52.1% a year earlier. The company attributed the profit decline to heavier investment in faculty training, facilities, and student employability programs, which increased costs substantially.