CHINA CHUNLAI (01969) announced its annual results for the period ended August 31, 2025. The group recorded revenue of RMB1.791 billion, a 9.8% year-on-year increase, while adjusted net profit rose 5.9% to RMB837 million. Total comprehensive income for the year reached RMB836 million, up 7.4% YoY, with basic earnings per share of 70 cents.

The growth in adjusted net profit was primarily driven by expanded student enrollment, which boosted revenue. To further increase total student intake, the company plans to acquire additional land use rights and construct new educational and residential facilities. Funding for these initiatives is expected to come from operational cash flow and external borrowings.

The company emphasized that expanding campus capacity aligns with its long-term enrollment growth strategy. Given that its institutions typically require students to reside on campus, enrollment numbers are largely dependent on dormitory capacity. Current facilities are insufficient to support significant enrollment increases, particularly considering gender-specific housing requirements and student demographics.

CHINA CHUNLAI aims to gradually increase campus capacity to achieve a balanced ratio between enrollment and facility utilization. Management believes this expansion is appropriate and will support sustainable institutional development. The company is confident that China's education authorities will approve higher enrollment quotas, provided it demonstrates adequate campus capacity, sufficient facilities, and the ability to deliver high-quality education—all critical factors for its future growth plans.