China Kepei Education Group Limited reported interim results for the six months ended 28 February 2026, highlighting robust top-line expansion but softer earnings as teaching investments rose.

Revenue and Profitability • Revenue climbed 20.2% year on year to RMB 1.10 billion, powered by a 19.3% increase in tuition fees to RMB 1.04 billion, which contributed 94.0% of total sales. Boarding fees rose 44.6% to RMB 64.21 million. • Cost of sales jumped 35.4% to RMB 595.21 million, reflecting higher spending on faculty remuneration, depreciation and student training. • Gross profit increased 6.3% to RMB 508.57 million; gross margin narrowed to 46.1% from 52.1%. • Profit for the period fell 9.9% to RMB 384.15 million. Core net profit, adjusted mainly for FX movements and purchase-price allocation amortisation, declined 11.3% to RMB 385.07 million. • Adjusted EBITDA slipped 2.6% to RMB 566.35 million.

Cash Flow and Balance Sheet • Net cash from operations surged to RMB 707.94 million (FY25 H1: RMB 459.18 million), boosted by upfront tuition receipts. • Capital expenditure reached RMB 512.30 million, largely for campus expansion and equipment upgrades. • Cash and cash equivalents stood at RMB 1.37 billion; interest-bearing debt totalled RMB 1.13 billion, resulting in a gearing ratio of 19.1% (31 Aug 2025: 20.3%). • Net current liabilities amounted to RMB 714.99 million, mainly due to RMB 968.58 million of contract liabilities (unearned tuition).

Operational Metrics • Total full-time enrolment for the 2025/26 academic year was approximately 77,500 students, of which undergraduate enrolment was about 69,500, pushing the undergraduate mix close to 90%. • The overall graduate employment rate exceeded 95% in 2025, with a 70% major-to-position matching rate.

Dividend • No interim dividend was declared (FY25 H1: HKD 0.07 per share). A final dividend of HKD 0.06 per share for FY2025 (paid in the current period) amounted to RMB 109.96 million.

Strategic Focus The group is advancing a “One Internal, Two External” strategy: 1) Intensifying investment in teacher development and AI-powered smart-campus initiatives to lift teaching quality. 2) Overseas expansion through partnerships with universities in the UK, Australia and Asia, and growing links with Belt-and-Road enterprises to support student employment abroad. 3) Domestic external growth targeting emerging sectors such as AI, robotics, low-altitude logistics and digital economy via industry-education integration with partners like Huawei, JD and BYD.

Regulatory Update Management is preparing for the mandatory classification registration of private schools in Guangdong, Heilongjiang and Anhui provinces, aiming to ensure compliance and sustain long-term development.

Outlook China Kepei Education intends to maintain growth by expanding undergraduate capacity, enhancing industry partnerships and pursuing overseas opportunities, while balancing increased operating costs with initiatives to protect margins.