Edvantage Group released its unaudited interim results for the six months ended 28 February 2026, reporting a sharp contraction in profitability driven by higher operating costs and a decline in student numbers.

Revenue fell 4.9% year-on-year to RMB 1.19 billion, while gross profit slumped 41.5% to RMB 0.28 billion. The gross margin narrowed to 23.8%, down from 38.7% a year earlier, as cost of revenue climbed 18.2% to RMB 0.90 billion on rising staff expenses and continued investment in teaching resources.

Profit attributable to owners of the Company dropped 58.4% to RMB 0.10 billion. Basic earnings per share declined to 8.50 RMB cents from 20.98 RMB cents. Selling and administrative expenses eased 8.8% to RMB 233.95 million, but the savings were offset by the stepped-up spending on faculty and infrastructure. Finance costs were cut by more than half to RMB 18.58 million.

Student enrolment across the Group’s nine schools decreased 7.1% to 93,170, with the steepest declines recorded at Huashang College (-11%), Urban Technician College (-12%) and Huashang Technical School (-29%).

Segment-wise, PRC higher and vocational education contributed revenue of RMB 1.17 billion and a segment profit of RMB 160.86 million. Overseas operations generated revenue of RMB 16.19 million and posted a segment loss of RMB 2.50 million.

Edvantage continued to expand its asset base: property, plant and equipment rose 5.8% to RMB 6.07 billion following campus construction in Guangdong and Sichuan. Capital expenditure during the period totalled RMB 0.53 billion.

Liquidity remained solid with cash, cash equivalents and structured deposits of RMB 1.70 billion, though down from RMB 2.46 billion at end-August 2025 due to ongoing capex. Total bank and other borrowings stood at RMB 1.88 billion, lowering the gearing ratio to 34.7% from 40.0%.

The Board did not declare an interim dividend. A final dividend for the year ended 31 August 2025 amounting to RMB 79.20 million (HK 7.4 cents per share) remains scheduled for payment on 29 May 2026.

Management reiterated its strategy of “AI Empowering Vocational Education”, increased investment in the Guangdong-Hong Kong-Macao Greater Bay Area campuses, and commitment to high-quality, application-oriented talent cultivation while closely monitoring cost structures.