Edvantage Group (Edvantage) reported softer interim results for the six months ended 28 February 2026, as higher spending on faculty and digital initiatives outweighed modest revenue pressure and shrinking enrolment.

Revenue fell 4.9% year on year to RMB1.19 billion, reflecting a 7.1% dip in total student numbers to 93,170, primarily at Huashang College, Huashang Technical School and Urban Technician College.

Cost of revenue climbed 18.2% to RMB903.52 million, driven by a RMB76.40 million rise in staff expenses and a RMB57.50 million uplift in teaching-related outlays linked to Edvantage’s strategy of “AI-empowered vocational education” and campus expansion. As a result, gross profit contracted 41.5% to RMB282.34 million, with gross margin sliding to 23.8% from 38.7% a year earlier.

Profit before tax dropped 49.3% to RMB145.05 million, while profit attributable to shareholders declined 58.4% to RMB101.47 million. Basic earnings per share fell to 8.50 RMB cents from 20.98 RMB cents.

Capital expenditure reached RMB529.0 million, funneled into new campus construction in Jiangmen (Huashang Vocational College), facility upgrades in Guangdong (Zengcheng and Sihui) and Sichuan (Meishan, Chengdu), and continued digital infrastructure investments.

Cash and cash equivalents stood at RMB1.58 billion, down 36.5% from end-FY2025, while total bank and other borrowings decreased 12.1% to RMB1.88 billion. The gearing ratio improved to 34.7% (31 August 2025: 40.0%). Net current liabilities widened to RMB686.58 million.

The board reiterated its strategic focus on AI integration, industry-education collaboration and overseas expansion, but opted not to declare an interim dividend. A final dividend of HK7.4 cents per share (approx. RMB79.20 million) for FY2025 is scheduled for payment on 29 May 2026.

Management highlighted continued investment in AI-driven curricula, faculty recruitment and smart campus facilities as critical to long-term competitiveness, despite near-term margin pressure.