China Maple Leaf Educational Systems projects significant profit surge

China Maple Leaf Educational Systems Limited expects its profit attributable to owners to be no less than RMB300.0m for the fiscal year ended August 31, 2025 (FY2025), a significant increase from approximately RMB15.5m in FY2024. This positive profit alert is based on a preliminary assessment of the group’s unaudited consolidated management accounts.

The anticipated surge in profit is primarily attributed to a substantial increase in other gains and losses. The company projects a gain of not less than RMB225.0m in this category for FY2025, a stark contrast to the loss of approximately RMB4.0m in FY2024. This improvement is driven by the non-recurrence of a RMB28.2m loss from fair value changes of fully repaid convertible bonds, a gain on bargain purchase of a subsidiary, and a gain from the derecognition of other payables to deregistered related parties.

Additionally, the group expects a substantial decrease in finance costs for FY2025. This reduction stems from lower interest expenses on secured bank and other borrowings, alongside the absence of interest expense on convertible bonds due to their full repayment during FY2024. Shareholders and potential investors are advised to exercise caution and await the full annual results, expected by the end of November 2025.