Cathay Group Holdings Inc. reported a 46.0% jump in interim net profit to RMB 204.61 million for the six months ended 30 June 2026, propelled by robust growth in its core higher-education segment and a sharp turnaround in entertainment and livestreaming e-commerce operations.
Revenue climbed 15.7% to RMB 438.75 million, led by a 17.7% increase in higher-education, vocational and international programmes to RMB 414.62 million. Rising tuition fees for recent undergraduate cohorts and an 8.4% year-on-year rise in undergraduate enrolment to 27,273 students underpinned the segment’s performance. Segment profit advanced 14.2% to RMB 205.96 million, keeping the education arm’s gross margin steady at 60.3%.
Entertainment and livestreaming e-commerce revenue slipped 10.9% to RMB 24.13 million as artist management income softened; however, segment loss narrowed dramatically to just RMB 0.38 million from a RMB 45.18 million deficit a year earlier. The improvement stemmed from the absence of prior-year fair-value losses on TV/film investments and tighter cost controls, lifting segment gross margin to 20.1% from –10.7%.
Group gross profit expanded 22.6% to RMB 254.76 million, raising overall gross margin to 58.1% (1H 2025: 54.8%). Basic and diluted earnings per share increased to 11.39 RMB cents from 7.73 RMB cents.
Operating cash flow and a debt-free balance sheet supported liquidity. Cash, time deposits and structured deposits totalled RMB 1.39 billion at end-June (31 December 2025: RMB 1.65 billion). The current ratio strengthened to 4.61x, while the liability-to-asset ratio fell to 9.5%. The Board declared no interim dividend, following payment of a final dividend of HK$0.068 per share for FY 2025.
Cathay Group confirmed that the RMB 420 million of bridging loans extended to the seller of Olympic College remain outstanding; cumulative impairment provisions of RMB 240.75 million were unchanged as collateral valuations were stable. Legal action to recover RMB 170 million is under enforcement, and the Group expects to complete the college acquisition by end-2026.
Looking ahead, management will pursue three parallel growth tracks: strengthening media and arts education, expanding pay-for-knowledge and vertical e-commerce offerings, and launching AI-enabled education products— including the planned 2026 debut of an “AI Professor & AI Arts Courses” subscription platform developed with a domestic AI partner.
No significant post-period events, material investments, or borrowings were reported.
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