CHINA EDU GROUP (00839) announced that the group anticipates achieving a net profit of approximately RMB440 million to RMB600 million for the fiscal year ending August 31, 2025. This compares to a net profit of RMB502 million recorded in the previous fiscal year ending August 31, 2024.

The projected net profit for the 2025 fiscal year already accounts for expected impairment losses on goodwill and intangible assets. The group foresees recognizing impairment losses related to goodwill and intangible assets for certain cash-generating units located in Hainan, Guangdong, and Henan provinces in China.

These anticipated impairments primarily stem from downward revisions in estimated future cash flows for the affected units, reflecting increased market supply in these regions and a general decline in payment capacity amid the current macroeconomic environment.

Based on preliminary assessments, the group expects to record a one-time, non-cash impairment loss (net of deferred tax) ranging between RMB1.62 billion and RMB1.7 billion for the 2025 fiscal year.