Chen Lin Education reports significant loss for 2025 due to non-cash impairments

Chen Lin Education Group Holdings Limited reported a loss of 412,012,000 yuan for the year ended August 31, 2025, a significant shift from the 15,367,000 yuan profit recorded in 2024. This downturn was largely attributed to one-off, non-cash impairment losses on goodwill and certain non-current assets amounting to approximately 288,800,000 yuan, and a non-cash loss on the restoration of deferred revenue of 42,600,000 yuan. Despite these challenges, revenue for the year saw a slight increase to 600,702,000 yuan from 599,452,000 yuan in 2024, driven by growth in tuition and boarding fees.

Adjusted EBITDA, excluding the one-off non-cash expenses, was 184,498,000 yuan, a modest decrease of 4.2% from 192,395,000 yuan in 2024. The group's total equity decreased to 439,500,000 yuan from 860,732,000 yuan in 2024, leading to an increase in the gearing ratio to approximately 550.0% from 261.2%. The board has not recommended a final dividend for 2025.