XJ International Holdings has released its FY2026 interim results (six months to 28 Feb 2026), highlighting a sharp profitability rebound driven by portfolio optimisation and tighter cost controls despite modest top-line pressure.

Financial Highlights • Revenue slid 3.33% year on year to RMB 2.05 billion, reflecting the disposal of under-performing and non-core schools. • Reported gross profit rose 6.95% to RMB 988.19 million; adjusted gross profit increased 6.29% to RMB 1.01 billion after excluding valuation-related depreciation and amortisation. • Net profit more than doubled to RMB 620.19 million, up 101.40%. Adjusted net profit advanced 13.71% to RMB 545.20 million. • Selling expenses edged up 4.72% to RMB 167.05 million as the group expanded overseas recruitment channels, while administrative expenses declined 5.59% to RMB 271.58 million. • Finance costs fell 10.96% to RMB 100.18 million, aided by a smaller loan book. • Current ratio improved to 0.82 (FY2025: 0.69); net debt-to-equity moved to 0.7% from a net cash position of –4.9% six months earlier, following sizeable debt repayments and lower cash balances. • No interim dividend was declared.

Balance-Sheet Position • Cash and cash equivalents totalled RMB 2.13 billion; total interest-bearing loans stood at RMB 2.36 billion, down RMB 460.77 million from August 2025. • Total equity reached RMB 10.34 billion, while debt-to-equity moderated to 22.9% (FY2025: 29.5%). • Capital commitments amounted to RMB 543.36 million, mainly for property, plant and equipment.

Strategic Actions & Events • Rights issue in September 2025 raised HK$87.84 million net, applied to settle convertible-bond obligations. • All outstanding US$162.67 million convertible bonds fully redeemed by late September 2025; listing status cancelled on 8 Oct 2025. • Divested Xingtai, Suzhou and Shaanxi school groups during the period, realising a RMB 140.86 million disposal gain and reducing liabilities attached to these assets. • Continued investment (c.RMB 20 million) in smart classrooms, AI, new energy and aviation training facilities; added 282 faculty members, 25.2% of whom hold doctorates or senior titles. • Deepened school-enterprise cooperation, engaging 2,349 companies and offering over 93,000 internship and job opportunities. • Overseas arm INTI International University (Malaysia) and Thailand’s Shinawatra University expanded academic collaborations, publishing a combined 1,960 papers.

Operational Outlook Management will prioritise quality-oriented growth, dynamic optimisation of programme mix aligned with emerging industries, deeper integration of AI and smart-campus initiatives, and measured expansion along the Belt and Road education corridor. Capital expenditure remains focused on teaching facilities, modern industry colleges and overseas projects.

Corporate Governance & Capital • Authorised share capital doubled to 20 billion shares in February 2026; issued shares increased to 8.67 billion after the rights issue and bond conversion. • Independent non-executive director Wang Shunhong appointed; several board re-designations completed. • No significant contingent liabilities or new major investment plans reported post-balance-sheet date.

XJ International positions its streamlined portfolio and strengthened balance sheet to support sustained, high-quality education services across its domestic and international network.