Scholar Education Group (SCHOLAR EDU) has issued a profit warning for the six months ended 30 June 2026, projecting net profit attributable to owners of the Company of not less than RMB12.00 million. This compares with RMB62.90 million in the prior-year period, indicating an expected decline of about 80.9%.

Excluding share-based compensation, adjusted net profit is anticipated to be no less than RMB22.00 million, down approximately 72.9% from RMB81.30 million a year earlier.

Management attributes the profit contraction to a longer-than-expected ramp-up period for newly opened literacy learning centres. While revenue contribution from these centres remains limited, operating expenses—including staff costs, amortisation, depreciation, utilities and property management—continue to weigh heavily on margins.

The figures are based on preliminary, unaudited management accounts and may be subject to adjustment. The Company plans to release its full interim results in August 2026.

Investors are advised to exercise caution when dealing in SCHOLAR EDU shares.