Dashan Education reports wider loss as restructuring costs weigh

Dashan Education Holdings Limited reported a loss of RMB45.9m for the six months ended 30 June 2025, a notable increase from RMB8.8m in the corresponding period of 2024. This was primarily attributed to share-based payment expenses amounting to RMB29.9m. Revenue for the period decreased by 12.6% to RMB41.5m from RMB47.5m, with declines in extracurricular programs, overseas education, and training and consultancy segments. A new segment, brand operation and management, contributed RMB5.7m.

The group's gross profit stood at RMB17.3m, with the gross profit margin improving to 41.7% from 39.9% in 2024. Administrative expenses surged to RMB54.9m from RMB25.4m, mainly due to share-based payment expenses. Other gains and losses shifted from a RMB6.0m gain in 2024 to a RMB1.0m loss, affected by the absence of software sale gains and a fair value loss on financial assets.

As of 30 June 2025, the group's net current liabilities increased to RMB57.5m, up from RMB40.9m at 31 December 2024, largely due to a 62.9% decrease in bank balances and cash to RMB19.3m. Borrowings increased to RMB7.2m from RMB2.3m. The group continues to reallocate unutilized proceeds from its 2020 listing, extending the expected timeline for use to the end of 2025.