Shanghai Gench Education reports profit dip despite stable revenue

Shanghai Gench Education Group Limited reported stable revenue of RMB534,054,000 for the six months ended June 30, 2025, a minor decrease from RMB535,434,000 in the corresponding period of 2024. Profit before tax decreased by 12.2% to RMB212,334,000 from RMB241,690,000, leading to a profit for the period of RMB162,061,000, down from RMB179,857,000 in the prior year. Basic and diluted earnings per share for the period stood at RMB0.41, compared to RMB0.45 in 2024.

The decline in profit was primarily attributed to an increase in cost of sales, which rose by 6.0% to RMB216,850,000. This was mainly due to higher salary costs and increased depreciation and amortization expenses as the fourth phase of the campus became fully operational. Administrative expenses also increased by 20.4% to RMB104,473,000 due to higher administrative staff salaries and logistics expenses related to campus renovations.

The Group's total assets less current liabilities increased to RMB3,119,981,000 as of June 30, 2025, up from RMB2,996,269,000 at December 31, 2024. The board has recommended an interim dividend of HK$0.10 per ordinary share for the six months ended June 30, 2025, payable on October 24, 2025.