Tianli International Holdings Limited (Tianli International) has released a profit warning for the financial year ended 31 August 2026. Management’s preliminary review of unaudited figures indicates that revenue will climb approximately 5.9% year-on-year to around RMB3.80 billion, driven by an expanded supply-chain product portfolio and continued rollout of AI-powered education services.
Despite the top-line expansion, net profit is expected to decline to between RMB580 million and RMB600 million, a drop of roughly 7.4%–10.5% from RMB648 million in FY2025. Adjusted profit, which excludes items such as equity-settled share-based payments, associate results, and foreign-exchange effects, is forecast at RMB520 million–RMB540 million, 12.3%–15.6% lower than the re-presented RMB616 million a year earlier.
Management attributes the earnings contraction to four main cost pressures: 1. Higher R&D spending on the AI quality middle platform and increased marketing outlays for smart-learning products. 2. Preparatory and operating expenses linked to establishing a Hong Kong international school. 3. Additional management-consulting fees incurred for a strategic upgrade initiative titled “Focusing on the Roots of Education and Embracing the Changes of the Times”. 4. A larger provision for expected credit-impairment losses on receivables.
Reversals of impairment losses on property, plant, and equipment further complicated year-on-year profit comparability; these reversals are excluded from the adjusted profit metric.
The audited annual results are scheduled for release on or before 30 November 2026. Tianli International advises shareholders and prospective investors to exercise caution when dealing in the company’s shares until the full results are published.
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