Cathay Group Holdings' profit surges 136% driven by higher education segment

Cathay Group Holdings Inc. reported a profit of RMB140,102,000 for the six months ended June 30, 2025, a 136.4% increase from RMB59,262,000 in the same period of 2024. Total revenue for the period decreased slightly by 1.9% to RMB379,289,000 from RMB386,570,000 year-on-year. This was primarily due to a 10.0% increase in revenue from the higher education (media and arts), vocational, and international education segment, largely offset by a 59.2% decrease in the entertainment and livestreaming e-commerce segment.

The gross profit for the Group rose by 7.2% to RMB207,732,000, with the overall gross margin improving from 50.1% to 54.8%. The higher education segment's segment profit notably increased from RMB101,439,000 to RMB180,388,000, driven by improved gross profit and no further impairment losses on Bridging Loans. Conversely, the entertainment and livestreaming e-commerce segment recorded a loss of RMB45,182,000, down from a profit of RMB(41,212,000) in 2024, impacted by a loss from changes in the fair value of financial assets and reduced livestreaming sales.

Adjusted Net Profit, a non-HKFRS measure, also saw a substantial increase of 29.7% to RMB140,614,000 from RMB108,393,000. The Group's financial position remains healthy with a current ratio of 457.7% and zero interest-bearing borrowings as of June 30, 2025.