TIANLI INT HLDG (01773) has released an announcement stating that the group expects to record for the year ending August 31, 2026: revenue of approximately RMB 3.8 billion, representing growth of approximately 5.9% compared with revenue of approximately RMB 3.589 billion for the year ended August 31, 2025; profit of approximately RMB 580 million to RMB 600 million, representing a decline of approximately 7.4% to 10.5% compared with profit of approximately RMB 648 million for the year ended August 31, 2025; and adjusted profit of approximately RMB 520 million to RMB 540 million, representing a decline of approximately 12.3% to 15.6% compared with adjusted profit of approximately RMB 616 million for the year ended August 31, 2025.
Compared with the year ended August 31, 2025, the group's financial performance in terms of revenue improved during the year, mainly because: the group continued to expand and enrich its supply chain product matrix, driving significant growth in product sales revenue; and the continued promotion and application of the group's AI series products drove steady growth in smart education service revenue.
Compared with the year ended August 31, 2025, the group's financial performance in terms of profit and adjusted profit declined during the year, mainly because: the group's research and development investment in the construction of an AI quality middle platform and the marketing and promotion expenses for AI smart learning products both increased; preparation and operating expenses incurred by the group for establishing an international school in Hong Kong; newly added management consulting expenses incurred by the group to advance the strategic upgrade of "rooting itself in the essence of education and embracing the changes of the times"; and an increase in the group's provision for expected credit impairment losses on receivables compared with the same period last year.
In addition to the above factors, the year-on-year change in the group's profit was also affected by the reversal of impairment losses on property, plant and equipment. Such reversal has been excluded in calculating adjusted profit.
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