China Xinhua Education Group Limited (CH Xinhua Edu, 02779) released its audited results for the year ended 31 December 2025.

Revenue and Profitability • Revenue climbed 1.5% year-on-year to RMB658.03 million, driven mainly by higher average tuition fees. • Gross profit fell 14.4% to RMB335.92 million as cost of sales rose 25.9%, cutting the gross margin to 51.1% from 60.6% a year earlier. • Profit for the year increased 2.4% to RMB338.05 million; net margin stood at 51.4%. • Adjusted net profit, which excludes foreign-exchange gains and share-based payments, declined 12.7% to RMB313.92 million. • Basic and diluted EPS reached 21.02 RMB cents, up from 20.53 RMB cents.

Cost Structure • Staff expenses were the main cost driver, surging 28.9% to RMB233.72 million. • Finance costs edged down 8.6% to RMB12.17 million, reflecting lower bank borrowings and interest rates.

Balance Sheet and Liquidity • Total assets expanded to RMB5.13 billion, while total liabilities fell to RMB1.08 billion; the gearing ratio improved to 21% from 23%. • Cash, bank balances and long-term deposits totaled RMB1.13 billion, up 10.5% year-on-year. • Interest-bearing debt declined to RMB539.78 million from RMB601.85 million. • Net current assets rose slightly to RMB345.12 million. • Capital expenditure during the year amounted to RMB64.80 million, primarily for campus facilities and equipment.

Operational Highlights • Full-time student enrolment for the 2025/26 academic year reached 43,213, a 1.6% increase. • The group added four national-level first-class undergraduate programs and four national research projects, and established an Anhui Provincial Postdoctoral Research Station. • Staff development remained a focus, with 1,174 training sessions held and national-level project wins by faculty up 240% year-on-year.

Capital Management and Distributions • No final dividend was proposed for FY2025 (FY2024: nil). • There were no material acquisitions, disposals, or pledged assets during the period.

Outlook Management plans to enhance educational capacity, deepen industry-education integration, expand digital and AI-enabled learning platforms, and pursue further international collaboration to support long-term growth.