SCHOLAR EDU (01769) expects that the mid-term net profit attributable to shareholders will decrease by no less than 12 million yuan compared to the same period last year.

Scholar Edu (01769) announced that the board of directors expects that as of June 30, 2026, six subsidiaries will generate a net profit attributable to the company's owners of not less than RMB 12 million (for the six months ended June 30, 2025: net profit attributable to the company's owners RMB 62.9 million). Excluding share-based compensation expenses, the group expects to achieve adjusted net profit attributable to the company's owners (measured under non-international financial reporting accounting standards) of not less than RMB 22 million (for the six months ended June 30, 2025: adjusted net profit attributable to the company's owners RMB 81.3 million). The expected decrease in net profit attributable to the company's owners and adjusted net profit (measured under non-international financial reporting accounting standards) for the six months ending June 30, 2026 is mainly due to the longer than expected initial operating period of some literacy learning centers and the preparation time required for market penetration. Therefore, the revenue generated by these learning centers (in the initial operating period) is still relatively limited, and direct operating costs including employee expenses and benefits, amortization, depreciation, utilities, and property management expenses, are still at a relatively high level compared to the revenue generated, thus negatively impacting the group's overall profitability.