Hong Kong-listed JH Education (01935) reported that for the year ended 31 December 2025, revenue slipped 3.0% year-on-year (YoY) to RMB 952.62 million, mainly reflecting a reduction in tuition income as student numbers and average tuition fees declined.

Profitability weakened sharply. Gross profit dropped 22.8% to RMB 484.85 million, cutting the gross margin to 50.9% from 64.0% a year earlier. Profit for the year fell 31.1% to RMB 302.26 million, while profit attributable to shareholders decreased 27.9% to RMB 225.65 million. Core net profit, which excludes non-operating items, contracted 30.9% to RMB 307.17 million.

Cost pressures were evident: cost of sales surged 32.3% to RMB 467.77 million, driven largely by a RMB 72.0 million increase in staff costs as the group recruited 327 additional teachers to support future expansion. Administrative expenses grew 12.3% to RMB 144.00 million. Other expenses more than doubled to RMB 103.00 million, primarily due to an RMB 80.56 million write-off related to dormitory renovations at Zhejiang Changzheng Vocational & Technical College.

Finance costs rose to RMB 3.95 million (2024: RMB 22,000) after the group drew down RMB 943.54 million of new bank loans. As at end-2025, interest-bearing borrowings totalled RMB 943.54 million, giving a gearing ratio of 0.23. Current borrowings stood at RMB 233.29 million, with a further RMB 710.26 million classified as non-current. The loans are secured against tuition-fee receivables of Zhengzhou College of Economics & Business.

Cash and cash equivalents declined to RMB 681.50 million (2024: RMB 1.60 billion) after heavy capital spending and an increase in time deposits to RMB 1.66 billion. Net current assets fell to RMB 843.04 million from RMB 1.38 billion a year earlier.

Student headcount decreased 5.5% to 55,152. Average tuition fees at Zhengzhou College of Economics & Business slipped 0.3% to RMB 15,952, while Zhejiang Changzheng College’s average tuition fell 2.6% to RMB 15,486.

Capital expenditure accelerated as the group builds a new campus for Zhengzhou College of Economics & Business on land acquired in December 2024. Construction contracts worth RMB 825.60 million were signed in March 2025, and operations are scheduled to begin in September 2026. To fund the project, the board reallocated the remaining RMB 415 million of unutilised IPO proceeds to the new campus; all other IPO funds have been fully deployed.

No dividend was declared for FY2025, matching the prior year. The board reported no post-balance-sheet events and confirmed ongoing compliance with Hong Kong’s Corporate Governance Code.