CHINA EDU GROUP (00839) saw its shares decline more than 9% following the release of its financial results. As of the latest update, the stock was down 8.62%, trading at HK$2.12, with a turnover of HK$10.52 million.
The company reported its interim results for the period ending in February. Revenue reached RMB 3.792 billion, representing a year-on-year increase of 3.24%. However, profit attributable to owners of the company fell 21.72% to RMB 757 million.
The decrease in net profit was primarily due to higher income tax and indirect tax expenses, as well as increased investment in teaching staff and educational resources following campus expansions and the addition of new courses. The operation of these new campuses and buildings also led to a rise in depreciation costs.
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