China Education Group (HKG:0839) expects a net profit of between 420 million yuan and 590 million yuan for the year ended Aug. 31, down from 1.54 billion yuan a year prior, a Tuesday bourse filing said.

The firm attributed the lower profit mainly to a potential impairment loss on goodwill and intangible assets related to certain cash-generating units in the Sichuan and Shaanxi provinces.

Shares of the educational services company closed over 4% lower on Tuesday.