China East Education (667) H1 2026 earnings summary

Executive summary

• Operated 233 vocational education institutions across China and Hong Kong as of 30 June 2026, with 158,039 average students/customers enrolled, up 3.4% year-over-year.

• Revenue rose 10.6% year-over-year to RMB2,418 million for H1 2026, driven by a 6.8% increase in new student enrollments and new customer registrations.

• Net profit increased 13% to RMB455 million, with adjusted net profit up 20.5% to RMB501 million, reflecting strong operational performance and higher-value enrollments.

• Gross profit margin improved to 58.3% from 57.3% year-over-year, attributed to scaling efficiency and a shift toward higher-value courses.

• Focused on five key segments: culinary arts, western cuisine and pastry, IT and internet technology, auto services, and fashion and beauty.

Financial highlights

• Revenue: RMB2,418 million (+10.6% YoY); Gross profit: RMB1,409 million (+12.4% YoY); Net profit: RMB455 million (+13.0% YoY).

• Adjusted EBITDA reached RMB947 million, up from RMB893 million (+6.0% YoY).

• Earnings per share: Basic 20.52 RMB cents, Diluted 20.17 RMB cents.

• Cost of revenue increased 8.1% to RMB1,009 million, mainly due to higher teaching staff costs and consumables.

• Selling expenses rose to RMB568 million (from RMB491 million), mainly due to increased advertising.

Outlook and guidance

• Plans to expand school network to all provincial capitals in China and select overseas cities, and establish more vocational education industrial parks.

• Continued investment in Vocational Education Industrial Parks to consolidate market leadership and achieve cost synergies.

• Intends to diversify course offerings, explore new sectors (e.g., pet industry, AI, healthcare, new energy vehicles, intelligent manufacturing), and further upgrade education levels.

• Expects to benefit from favorable national policies supporting vocational education and rising demand for skilled labor.