JH Educational Technology Inc. (JH Education, 01935) reported largely flat revenue but weaker profitability for the six months ended 30 June 2026, as preparations for the company’s Zhengzhou New Campus drove operating costs higher.

Revenue and Profitability • Revenue edged down 0.4% year on year to RMB 532.61 million, reflecting a strategic reduction in student intake for the 2025/26 academic year. • Cost of sales climbed 30% to RMB 266.82 million, linked to staffing, maintenance, student activity and training expenses ahead of the New Campus opening in September 2026. • Gross profit contracted 19% to RMB 265.79 million; gross margin fell to 50% from 61% a year earlier. • Profit before tax decreased 17% to RMB 255.97 million, while net profit slipped 16% to RMB 255.57 million. • Profit attributable to owners declined 24% to RMB 181.07 million, pulling basic EPS down to RMB 0.1131. • Core net profit, which adjusts for exchange gains/losses and acquisition-related amortisation, fell 16% to RMB 257.50 million.

Operational Metrics • Total enrolment dropped to 54,982 students (-6% YoY), with notable declines at College of Economics & Business (-6%) and Changzheng College (-6%). • Average tuition rose at Changzheng College (up to RMB 9,799) and Jingyi Secondary School (up to RMB 13,636), while dipping slightly at College of Economics & Business (RMB 8,051). • Teacher-to-student ratios of 1:38 (Changzheng) and 1:20 (Economics & Business) remained below the PRC guideline minimum of 1:18, prompting management to pledge further faculty recruitment.

Balance Sheet and Liquidity • Current assets stood at RMB 1.50 billion (-20% versus end-2025), mainly after a RMB 370.90 million drawdown of time deposits to fund construction. • Net current assets improved 15% to RMB 959.69 million, aided by a RMB 512.42 million decline in contract liabilities as prepaid tuition was recognised as revenue. • Non-current assets increased 6% to RMB 4.32 billion, driven by RMB 297.47 million capex for the New Campus. • Total equity rose 6% to RMB 4.39 billion; gearing ratio moved to 26% from 23% as interest-bearing borrowings expanded to RMB 1.15 billion. • Cash and cash equivalents closed at RMB 672.70 million (-1%), while total time deposits fell to RMB 1.29 billion (-24%). • Net operating cash outflow reached RMB 276.72 million, offset in part by RMB 201.11 million net cash inflow from financing activities.

Strategic Progress and Outlook The New Campus in Zhengzhou—designed for up to 20,000 students—remains on track for September 2026 launch, underpinning management’s expansion strategy. The company continues to explore domestic acquisitions and overseas opportunities, including plans for a California-based institution focused on business studies.

Dividend No interim dividend was declared.

Governance Update Effective 28 August 2026, Mr. Chen Yuguo stepped down as Chief Executive Officer and remains Chairman; Executive Director Mr. Chen Shu succeeded him as CEO. Independent governance structures remain in compliance with Hong Kong’s Corporate Governance Code following the separation of the Chairman and CEO roles.

Financial Position Summary (30 June 2026) • Revenue: RMB 532.61 million • Net profit: RMB 255.57 million • Cash & cash equivalents: RMB 672.70 million • Total equity: RMB 4.39 billion • Gearing ratio: 26%

JH Education plans to enhance profitability via tuition optimisation and scale expansion once the New Campus commences operations, while continuing faculty recruitment to meet regulatory standards.