LEADER EDU H1 FY2026: Revenue Rises 11.1% While Net Profit Slips 16.5% on Higher Costs and Finance Expenses

Bulletin Express
Apr 30

Leader Education Limited (LEADER EDU) released unaudited results for the six months ended 28 February 2026.

Revenue and Profitability • Revenue increased 11.1% year-on-year to RMB 191.30 million, driven by a larger student body (12,340 vs 11,909) and modest growth in tuition and boarding income. • Gross profit fell 24.9% to RMB 43.03 million as cost of sales expanded 29.1% to RMB 148.27 million. Key cost drivers included higher maintenance, heating, internship training and depreciation expenses. • Gross margin contracted to 22.5% from 33.3%. • Net profit declined 16.5% to RMB 20.23 million; basic EPS dropped to RMB 0.0303. • Other income surged to RMB 42.99 million (previous period: RMB 9.46 million), boosted by a RMB 19.90 million gain on the disposal of Tianjin Quanren and a RMB 9.35 million debt-interest waiver. • Finance costs almost doubled to RMB 36.36 million, reflecting larger borrowings and sale-and-leaseback liabilities.

Balance Sheet and Liquidity • Cash and cash equivalents fell to RMB 68.15 million (31 Aug 2025: RMB 275.84 million). • Total interest-bearing debt was RMB 1.32 billion, yielding a gearing ratio of 1.5x, unchanged from year-end. • Current assets stood at RMB 490.51 million versus current liabilities of RMB 699.60 million, resulting in net current liabilities of RMB 209.09 million. Management cites advance student payments and a RMB 10 million undrawn facility as mitigating factors. • Net assets edged up to RMB 873.63 million.

Capital Expenditure and Commitments • Capex reached RMB 96.92 million (prior period: RMB 79.10 million), mainly for campus construction and equipment. • Contracted but unprovided capital commitments totalled RMB 49.20 million.

Operational Highlights • Average tuition for FY2025/26 held steady; boarding fees increased slightly. • The college operated at an 88.32% utilisation rate. • Curriculum development, faculty expansion, digital-campus upgrades and international partnerships were highlighted as strategic priorities.

Corporate Actions • Disposed of 100% equity in Tianjin Quanren Secondary Vocational School for RMB 8.00 million, removing the unit from consolidation. • No interim dividend declared. • No significant contingent liabilities or post-period events reported.

Outlook Management plans to deepen international cooperation, pursue digital transformation, expand industry-education integration and continue the transition of Heilongjiang College of Business and Technology to for-profit status.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10