Virscend Education Company Limited released unaudited results for the six months ended 28 February 2026, revealing mixed performance indicators.

Revenue and Profitability • Revenue edged up 1.80% year-on-year to RMB 601.94 million, supported by larger student enrolment and marginal tuition fee increases. • Gross profit slid 1.60% to RMB 204.31 million; gross margin narrowed to 33.9% from 35.1%. • Profit for the period fell 53.30% to RMB 27.29 million, with net margin halving to 4.5% as higher staff costs (+6.9%) and finance expenses (+19.6%) offset revenue gains. • Adjusted net profit declined 33.0% to RMB 41.66 million after normalising for amortisation of acquisition-related intangibles and foreign-exchange movements. • Basic and diluted earnings per share dropped to RMB 0.9 fen from RMB 1.6 fen.

Segment & Operating Metrics • Tuition fees contributed RMB 495.07 million (+1.2%), accounting for 82.2% of total revenue. High-school tuition was largely flat at RMB 255.36 million, while university tuition grew 2.4% to RMB 239.71 million. • Ancillary income streams included boarding fees (RMB 30.74 million), canteen services (RMB 47.83 million) and education management/consultancy (RMB 11.13 million, +39.1%). • Total self-operated student enrolment reached 34,518, up 0.6%; utilisation rate improved to 74.2% from 71.4%. • Average annual tuition rose: domestic high school RMB 45,869 (+4.0%), international program RMB 143,484 (+1.2%), university RMB 17,298 (+1.6%).

Cost and Expense Trends • Cost of sales climbed 3.6% to RMB 397.63 million, driven chiefly by higher teacher remuneration. • Administrative expenses increased 10.2% to RMB 89.97 million, reflecting management compensation growth. • Finance costs rose to RMB 68.86 million amid larger borrowing balances.

Cash Flow & Balance Sheet • Operating outflow totalled RMB 40.59 million; combined investing and financing activities produced a total cash outflow of RMB 480.01 million, reducing cash and equivalents to RMB 475.51 million. • Interest-bearing bank and other borrowings expanded to RMB 2.48 billion (28 February 2026) from RMB 2.14 billion at FY-end, pushing the gearing ratio to 284.9%. • Capital commitments stood at RMB 13.83 million for buildings and equipment.

Dividend An interim dividend of HKD 0.50 cents per share was declared, down from HKD 0.80 cents a year earlier, payable on 29 May 2026 to shareholders on record as of 19 May 2026.

Strategic Priorities Management targets growth through: 1) additional asset-light high-school partnerships; 2) higher utilisation and selective tuition adjustments; 3) expansion of international programs and overseas study consulting; and 4) scaling non-formal education and management services.

Regulatory & Risk Landscape The Implementation Regulations effective 1 September 2021 continue to restrict control structures over compulsory-education entities; the company affirms compliance with its structured contracts. Key risks highlighted include regulatory changes, rising staff costs, interest-rate exposure, liquidity management and elevated leverage.

No significant post-period events were reported.