Minsheng Education Group Company Limited reported interim revenue of RMB 883.0 million (USD 121.0 million), down 1.3% year-on-year for the six months ended 30 June 2026. Despite softer top-line growth, gross profit climbed 13.1% to RMB 402.0 million, lifting gross margin to 45.5% from 39.7% on the back of lower operating costs in the online segment.

Profitability softened further down the income statement. EBITDA declined 7.6% to RMB 231.1 million, while profit for the period fell 18.2% to RMB 40.4 million. Loss attributable to equity holders widened modestly to RMB 5.5 million, translating into a basic loss per share of RMB 0.0013. The board did not declare an interim dividend.

Segment analysis reveals divergent trends. On-campus education revenue increased 2.8% to RMB 804.3 million, contributing 91.1% of group turnover and delivering segment profit of RMB 273.6 million. Online education revenue contracted 29.8% to RMB 78.6 million, generating a segment loss of RMB 102.8 million as market demand softened and cost rationalisation continued.

Cost of sales dropped 10.8% to RMB 481.0 million, reflecting reduced marketing and delivery expenses for online programmes. Selling expenses contracted 19.0% to RMB 44.0 million, but administrative expenses rose 9.3% to RMB 214.5 million, driven by higher professional fees. Other expenses surged to RMB 62.1 million, mainly on supplementary real-estate tax payments and higher credit-loss provisions. Finance costs increased 9.7% to RMB 73.9 million as borrowings expanded.

The balance-sheet position remains stable. Total assets were RMB 10.28 billion, with cash and restricted deposits of RMB 2.86 billion. Interest-bearing bank and other borrowings stood at RMB 2.83 billion, lifting the gearing ratio to 53.0% (31 Dec 2025: 49.4%). Net current assets improved to RMB 72.5 million from a net current liability of RMB 491.2 million six months earlier, aided by a sharp decline in contract liabilities.

Capital commitments include pledged buildings and equipment of RMB 76.6 million and time deposits of RMB 1.35 billion securing bank facilities. The company is also involved in ongoing arbitration with vendors related to its 49% stake in Leed International Education Group Inc.; no provision has been booked as management contests a partial arbitration award.

As at 30 June 2026, Minsheng Education operated ten schools across Chongqing, Shandong, Yunnan and Inner Mongolia, serving about 100,000 students (including 65,000 full-time undergraduates). Management intends to expand industry-education integration, invest in teaching infrastructure and digital platforms, and enhance its nationwide online-offline vocational network, while monitoring legal proceedings and maintaining prudent capital management.