Fenbi (2469) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 16.3% YoY to RMB1,248.3 million; net loss was RMB183.5 million versus net profit of RMB226.7 million a year earlier.

• Adjusted net loss, excluding share-based payments, was RMB158.4 million versus adjusted net profit of RMB271.5 million in H1 2025.

• Results reflected fewer public-sector exam positions and stronger competition; severance costs and investment losses also weighed on performance.

Financial highlights

• Gross profit fell 35.2% to RMB522.2 million; gross margin contracted to 41.8% from 54.0%.

• Cost of revenue rose 5.8% to RMB726.1 million despite lower sales, including higher tutoring-service costs associated with severance payments.

• Administrative expenses rose 9.3% to RMB199.3 million; selling and marketing rose 18.1% to RMB361.7 million, and R&D rose 22.8% to RMB132.4 million, partly reflecting AI investment.

• Operating loss was RMB177.0 million versus operating profit of RMB219.0 million; loss before tax was RMB167.6 million versus profit before tax of RMB235.7 million.

• Operating cash inflow was RMB6.9 million versus RMB213.3 million; cash and cash equivalents fell to RMB400.9 million from RMB869.1 million at year-end 2025.

Outlook and guidance

• Priorities include focusing resources on core products, optimizing structure, costs and operations, and improving execution efficiency amid a challenging market.

• Plans include improving online product experience and engagement, raising offline and small-class enrollment conversion and teacher utilization, and upgrading AI-assisted learning services.

• AI work includes upgrades to the Exam Drilling System Class and AI interview evaluation, guided by learning outcomes, user experience and cost-effectiveness.

• Management intends to maintain reasonable pricing and prioritize course quality, teaching outcomes, and stable teaching and service teams over short-term growth.