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.