Virscend Education Company Limited released its unaudited interim results for the six months ended 28 February 2026.

Revenue and profitability • Revenue grew 1.8% year-on-year to RMB601.94 million, driven mainly by a 1.2% rise in tuition income to RMB495.07 million alongside marginal gains in boarding and canteen fees. • Gross profit slipped 1.6% to RMB204.31 million as the gross margin narrowed to 33.9% from 35.1% a year earlier. • Profit for the period fell 53.3% to RMB27.29 million; profit attributable to shareholders declined 46.4% to RMB26.29 million. • Adjusted non-IFRS net profit decreased 33.0% to RMB41.66 million, reflecting higher foreign-exchange losses and increased amortisation of acquisition-related intangibles. • Basic and diluted earnings per share dropped to RMB0.9 fen from RMB1.6 fen.

Cost and expense dynamics • Cost of sales rose 3.6% to RMB397.63 million, mainly from an additional 6.9% (RMB11.0 million) in staff costs as teaching headcount and salaries increased. • Administrative expenses advanced 10.2% to RMB89.97 million, reflecting higher management remuneration. • Finance costs climbed 19.6% to RMB68.86 million due to a larger debt balance. • Other expenses and losses almost doubled to RMB17.85 million, primarily on foreign-exchange losses stemming from Hong Kong-dollar depreciation.

Operational metrics • Total self-operated student enrolment reached 34,518, up 0.6% year-on-year. University students rose 1.1% to 24,967, while high-school enrolment stood at 9,551 (domestic and international combined). • Average tuition fees increased to RMB45,869 for domestic high-school programmes (+4.0%), RMB143,484 for international high-school programmes (+1.2%), and RMB17,298 for university programmes (+1.6%). • Overall school utilisation improved to 74.2% from 71.4%.

Financial position and cash flow • Cash and cash equivalents totalled RMB475.51 million at period-end, down from RMB954.99 million at FY2025 year-end, after net operating cash outflow of RMB40.59 million and investing and financing outflows. • Interest-bearing bank and other borrowings rose to RMB2.48 billion (31 August 2025: RMB2.14 billion); gearing ratio increased to 284.9% from 249.0%. • Net cash used in investing activities widened to RMB181.42 million, mainly for campus expansion and financial product purchases. • Net cash used in financing activities reached RMB258.00 million, reflecting higher debt repayments and a RMB344.22 million reduction in related-party loans.

Dividend An interim dividend of HKD0.50 cents per share has been declared, payable on 29 May 2026 to shareholders on record as of 19 May 2026, to be funded from the share premium account.

Strategic outlook Management targets further growth by: 1. Adding new high schools, primarily via asset-light partnerships. 2. Increasing utilisation and tuition levels at existing campuses. 3. Expanding international programmes and overseas study consulting, which generated RMB5.84 million in interim revenue (+74.6%). 4. Broadening non-formal education activities, including one-stop education centres and school management services—these segments delivered RMB9.52 million and RMB11.13 million respectively.

Risk considerations Key risks highlighted include evolving PRC education regulations, ability to sustain enrolment and tuition growth, rising staff costs, and elevated leverage.

No material post-balance-sheet events were reported.