China Science and Education Industry Group Limited (CHI SCI&EDU IND, 01756) released its interim results for the six months ended 28 February 2026.

Revenue climbed 7.6% year-on-year (YoY) to RMB 775.56 million, driven by a 6.9% rise in student enrolment to 59,902 and higher average tuition fees. Despite the top-line expansion, profitability weakened sharply:

• Gross profit dropped 34.2% YoY to RMB 234.73 million as cost of sales surged 48.5%; gross profit margin narrowed to 30.3% from 49.5%.

• Operating profit contracted 53.3% to RMB 133.64 million, while net profit attributable to the controlling shareholder fell 63.9% to RMB 84.69 million. Net margin slid to 10.9% from 32.5%.

• Adjusted net profit, which excludes fair-value changes and imputed interest expenses, decreased 59.7% to RMB 97.21 million; the adjusted net margin fell to 12.5% from 33.4%.

Rising costs were evident in several lines: staff costs (+10.3% YoY to RMB 252.95 million), depreciation (+12.4% to RMB 114.14 million) and administrative expenses (+23.0% to RMB 100.62 million).

Balance-sheet indicators showed tighter liquidity:

• Cash and cash equivalents dropped 60.9% since end-FY2025 to RMB 377.46 million.

• Total borrowings stood at RMB 1.99 billion; the debt-to-asset ratio edged up to 26.3%, while gearing (debt/total equity) eased to 45.5%.

• Capital expenditure accelerated 78.3% to RMB 375.60 million, mainly for new campus projects, lifting property, plant and equipment to RMB 5.48 billion (+4.1% versus end-FY2025).

No interim dividend was declared.

Management reaffirmed its focus on “integration of industry and education” and plans to continue expanding facilities—highlighted by ongoing construction of Huali College’s Jiangmen campus—while seeking to optimise costs and preserve liquidity. No material acquisitions, disposals or post-period events were reported.