Chen Lin Education Group Holdings Limited (CHEN LIN EDU) expects to post an unaudited net loss of no more than RMB24.00 million for the six months ended 28 February 2026. The projected deficit represents a substantial narrowing against the RMB412.00 million loss recorded for the year ended 31 August 2025 and contrasts with the RMB4.60 million profit reported for the prior-year interim period.

Management attributes the improvement versus FY2025 mainly to: 1. Absence of a RMB288.80 million non-cash impairment recognised in the prior year on goodwill and other non-financial assets. 2. Absence of a RMB43.00 million non-cash loss on restoration of deferred revenue booked in FY2025.

The anticipated interim loss is primarily driven by: 1. Higher non-cash depreciation and amortisation as infrastructure upgrades at the Group’s educational institutions reached completion. 2. Increased education and operational service expenses aimed at enhancing service quality.

Despite the accounting loss, the Group projects earnings before interest, taxes, depreciation and amortisation (non-IFRS net profit) of approximately RMB90.00 million, underscoring stable operating cash flow. Management also reports a robust financial position, falling finance costs and an increasingly optimised debt structure.

Unaudited interim results are slated for release by end-April 2026. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares.