Maple Leaf Education posts significant profit surge despite revenue dip

China Maple Leaf Educational Systems Limited reported a profit of RMB308,877,000 for FY2025, an increase of 1,891.1% from RMB15,513,000 in FY2024. Basic earnings per share jumped to RMB10.54 cents from RMB0.52 cents, a rise of 1,926.9%. This profit surge was largely attributable to a change in other gains and losses, shifting from a RMB4,000,000 loss in FY2024 to a RMB231,000,000 gain in FY2025, and a decrease in finance costs.

The group's total revenue decreased by 3.9% to RMB1,180,049,000 in FY2025, down from RMB1,228,462,000 in FY2024. This reduction was primarily due to a decline in tuition fee income, particularly from operations in the Canadian International School (CIS). PRC operations contributed RMB446,626,000 (37.8%) to revenue, while overseas operations accounted for RMB733,423,000 (62.2%).

Gross profit experienced a modest decrease of 1.6% to RMB583,848,000 in FY2025 from RMB592,979,000 in FY2024. However, the gross profit margin improved from 48.3% to 49.5%, as the decline in cost of revenue (6.2%) outpaced the revenue decrease. Total student enrollment declined by 10.7% to 8,385 students in the 2024/2025 school year, primarily due to reduced enrollment in elementary schools and preschools across both PRC and overseas operations.