Chen Lin Education Group Holdings (Stock Code 01593) released its unaudited results for the six months ended 28 February 2026.

Financial highlights • Revenue inched up 0.16 % to RMB 337.25 million. • Gross profit fell 20.0 % to RMB 83.45 million as cost of revenue rose 9.2 % to RMB 253.79 million, driven by higher depreciation, amortisation and AI-empowerment expenses. • The Group swung to a net loss of RMB 23.64 million from a profit of RMB 4.57 million a year earlier. • EBITDA dropped 25.0 % to RMB 91.56 million. • Basic loss per share was RMB 2.48 cents (1H FY2025: earnings of RMB 0.48 cents).

Balance-sheet and cash flow • Cash and cash equivalents halved to RMB 74.72 million from RMB 150.26 million at 31 August 2025, reflecting seasonal tuition inflows and RMB 137.41 million of capex. • Total borrowings stood at RMB 2.44 billion; gearing ratio increased to 599.4 % (31 August 2025: 549.6 %). • Net current liabilities were RMB 1.61 billion. • No interim dividend was declared.

Operational snapshot • Chen Lin operates five schools with more than 30,000 students across Jiangxi, Guizhou and Henan provinces. • Tuition fees contributed RMB 302.20 million (89.6 % of revenue), boarding fees RMB 33.32 million, and other income RMB 1.72 million. • Depreciation of property, plant and equipment climbed to RMB 65.54 million (+15.5 %), reflecting completion of campus expansion and upgrades.

Strategic priorities Management plans to: 1. Deepen cooperation with local governments and enterprises to establish additional industrial colleges, notably in electronic information and low-altitude economy sectors. 2. Broaden AI-driven curricula, with new undergraduate programmes in integrated circuit design, artificial intelligence, and geotourism & planning engineering. 3. Lift the proportion of undergraduate offerings to improve profitability. 4. Continue faculty recruitment and retention, targeting “double-qualification” teachers and industry experts.

Liquidity measures The Board noted seasonal cash fluctuations and sizable near-term debt maturities. Management is negotiating refinancing, controlling capex, and the controlling shareholder has pledged not to demand repayment of a RMB 70.82 million related-party loan until liquidity stabilises.

Regulatory & compliance No material changes in PRC private-education regulations were identified during the period. The Group states that it remains in compliance with relevant laws.

Outlook Management expects China’s private education sector to retain secular growth momentum amid rising demand for applied and vocational training, and will pursue the outlined strategies to restore profitability and strengthen its balance-sheet position.