BOJUN EDU (01758) issues profit warning, expecting annual net loss of approximately 1.773 billion to 2.167 billion yuan.

BOJUN EDU (01758) announced that compared to the loss of approximately RMB 40.3 million for the year ended on August 31, 2024, the group is expected to incur a net loss of approximately RMB 177.3 million to RMB 216.7 million for the year ended on August 31, 2025. The Board believes that the increase in losses for this year is mainly due to a decrease in revenue in the vocational education sector and impairment of assets in the vocational education sector. As of the year ended August 31, 2025, the company generated revenue of approximately RMB 378.8 million, a decrease of approximately RMB 51 million compared to the year ended August 31, 2024. Revenue from the vocational education sector decreased by approximately RMB 34.5 million compared to the year ended August 31, 2024. Specifically, (i) revenue from secondary vocational education decreased by approximately RMB 17.7 million, mainly due to the continuous expansion of general high schools leading to a decrease in structural student sources; and (ii) revenue from higher vocational education decreased by approximately RMB 16.8 million, with enrollment numbers for the year ended August 31, 2025 remaining the same as the year ended August 31, 2024. The decrease in revenue is mainly due to structural adjustments in national vocational education funding, and a reduction in the subsidy base for higher vocational colleges by local finance this year. Based on the decline in operating performance of the vocational education sector for the year ended August 31, 2025, management conducted impairment tests on the assets in the vocational education sector, resulting in impairment of goodwill and property, plant, and equipment assets for the year.