CHINA EAST EDU (00667) Issues Profit Alert, Anticipates 46%-51% Net Profit Growth for 2025

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CHINA EAST EDU (00667) has announced that the group expects both its net profit and adjusted net profit for the year ending December 31, 2025, to increase by no less than 46% but no more than 51% compared to the net profit of approximately RMB 513 million and adjusted net profit of approximately RMB 525 million for the year ending December 31, 2024. Based on the information currently available to the board, the increase in net profit and adjusted net profit for the year is primarily attributable to (i) an approximate 6% rise in new student and new customer enrollments during the year, leading to an approximate 12% increase in the company's revenue; and (ii) the group's effective operational management and cost control during the year, which resulted in only a relatively moderate increase in overall costs despite significant revenue growth. On another note, as disclosed in the 2024 annual report and the 2025 interim report, in January 2025, the group acquired Shanxi Metallurgical Technician Institute and other associated companies (collectively referred to as the Target Group) for a total cash consideration of RMB 10 million (the Acquisition). In addition to the cash consideration paid, the group also provided RMB 15.35 million to support the Target Group's daily operations prior to the completion of the Acquisition. Following the completion of the Acquisition, the Target Group recorded a loss of approximately RMB 10 million during the year, which has been consolidated into the group's comprehensive management accounts for the year. The group's net profit and adjusted net profit for the year ended December 31, 2024, were not affected by this.

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