Readboy Education Holding Company (2385) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 10.2% YoY to RMB182.0m; gross margin improved to 22.2%, while reported net loss narrowed to RMB44.8m.

• Personal student tablets remained the core revenue driver; wearables and other products grew strongly, offsetting lower smart classroom solutions revenue.

• DeepSeek-enabled products and channel expansion underpin H2 plans, alongside continued cost control; management expects stable-to-improving sector demand.

Financial highlights

• Revenue was RMB182.0m, up 10.2% YoY; gross profit rose 14.9% to RMB40.3m.

• Net loss was RMB44.816m vs RMB45.202m; loss before tax was RMB44.895m vs RMB45.756m.

• Adjusted net loss, excluding non-cash fair-value losses on financial assets, widened to RMB44.145m from RMB34.220m.

• Selling and distribution expenses rose 46.6% to RMB40.5m; R&D fell 18.3% to RMB21.6m, while other income and gains declined 45.2% to RMB10.2m.

• Operating cash outflow was RMB11.6m vs RMB22.6m; investing and financing cash outflows were RMB9.9m and RMB22.2m.

Outlook and guidance

• H2 priorities include deeper DeepSeek integration, AI tutoring and personalised learning upgrades, AI features across more devices, and broader product and content ranges.

• Management expects sector conditions and demand to remain stable with a positive outlook, citing curriculum changes, AI adoption and policy support.

• Continued cost control and operational improvement remain priorities to strengthen profitability and returns; no numerical guidance was stated.

• The GB2C school sponsorship and distribution model is expected to begin contributing revenue in H2 after resources shifted from government tenders.