Readboy Education Holding Company (2385) H2 2025 earnings summary

Executive summary

• Revenue declined 27.4% YoY to RMB334.9m amid lower personal student tablet sales, tougher price competition and a strategic shift toward the GB2C education-services model.

• Priorities remained AI + Education, product and channel optimisation, cost and cash-flow discipline, and development of linked in-school, cloud-analysis and home-learning services.

Financial highlights

• Revenue was RMB334.9m versus RMB461.4m; gross profit fell 36.8% to RMB70.6m, and gross margin declined to 21.1% from 24.2%.

• Loss before tax widened to RMB101.5m from RMB62.5m; net loss was RMB118.7m versus RMB59.9m, including RMB17.1m income tax expense from deferred-tax-asset reversals.

• Adjusted net loss, excluding fair-value losses on financial assets, was RMB116.8m versus RMB47.5m; fair-value loss itself fell to RMB1.9m from RMB12.4m.

• Operating cash flow was negative RMB64.9m versus positive RMB8.8m; cash and cash equivalents fell to RMB155.7m from RMB264.5m.

Outlook and guidance

• No company-specific numerical earnings guidance was stated; 2026 priorities include AI-feature iteration, core-product experience, campus smart-education expansion, channel efficiency and prudent capital allocation.

• Strategy targets stronger user retention, service conversion and revenue quality through “hardware as entry point,” subscription services and verifiable learning outcomes; new initiatives remain early in commercialisation.

• RUNTO forecasts China’s learning-tablet market at 7.05m units in 2026 and AI penetration of 93.5%; competition, pricing pressure, policy changes and product acceptance remain near-term uncertainties.