Tianli International Holdings Limited reported solid top-line expansion for the six months ended 28 February 2026, underpinned by stronger product sales and the roll-out of AI education services, while higher procurement costs compressed profitability ratios.

Financial highlights • Revenue increased 14.2% year on year to RMB 2.14 billion, driven mainly by a 45.6% surge in product sales to RMB 691.31 million and a 3.4% rise in comprehensive education services to RMB 1.05 billion. • Gross profit rose 6.8% to RMB 753.26 million; gross margin slipped to 35.2% from 37.6% owing to lower-margin product sales and higher procurement costs. • Profit for the period climbed 21.0% to RMB 471.36 million, supported by an RMB 81.87 million reversal of prior-year asset impairments and an 85.6% rise in other income and gains. • Basic earnings per share improved to RMB 22.84 cents from RMB 19.28 cents. • No interim dividend was declared (1H25: RMB 5.78 cents per share).

Cost dynamics • Cost of sales grew 18.7% to RMB 1.39 billion. The largest swing came from procurement costs, up 49.6% to RMB 633.85 million, reflecting the heavier weight of product sales. • Staff costs rose 9.9% to RMB 266.08 million, partly due to head-count additions in the AI division. • Administrative expenses advanced 8.7% to RMB 127.47 million, mainly research and development spending on the “Qiming AI Companion” platform.

Balance-sheet and cash-flow snapshot • Cash and cash equivalents fell to RMB 449.26 million from RMB 965.24 million at FY25 year-end, as capital expenditure of RMB 540.20 million and share repurchases outweighed operating inflows. • Net cash from operating activities reached RMB 520.27 million; investing outflows were RMB 646.28 million and financing outflows RMB 389.32 million. • Net current liabilities widened to RMB 2.31 billion; total borrowings increased to RMB 2.54 billion, giving a gearing ratio of 25.3% (FY25: 23.9%). • Unutilised banking facilities amounted to RMB 1.43 billion.

Operational update • The group served about 60,000 high-school students across 63 schools and managed 23 entrusted schools during the period. • Teacher head-count at self-owned schools was 2,612. • AI initiatives gained traction: the AI Bootcamp enrolled 2,300 students—up 130% year on year—with 81% recording Gaokao score improvements averaging 48 points. • Management targets an “internal-external dual circulation” model to embed AI tools in existing schools and commercialise them across third-party institutions.

Regulatory context and impairment reversal Tianli continues to exclude its compulsory-education “Affected Business” from consolidation due to the 2021 Implementation Regulations. Newly secured art-training licences lifted the recoverable value of related assets, enabling an RMB 81.87 million impairment reversal.

Capital management • The company repurchased 18.06 million shares on the Hong Kong Stock Exchange for HKD 55.76 million during the period, citing undervaluation. • Outstanding treasury shares stood at 20.73 million as of 28 February 2026.

Outlook Management plans to deepen AI deployment, streamline operations via digital upgrades and maintain prudent liquidity management amid a net-current-liability position. No significant post-period events were reported.